Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 28, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-03579 | |
Entity Registrant Name | PITNEY BOWES INC | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 06-0495050 | |
Entity Address, Address Line One | 3001 Summer Street, | |
Entity Address, City or Town | Stamford, | |
Entity Address, State or Province | CT | |
Entity Address, Postal Zip Code | 06926 | |
City Area Code | (203) | |
Local Phone Number | 356-5000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 173,108,679 | |
Entity Central Index Key | 0000078814 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2020 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Common stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock, $1 par value per share | |
Trading Symbol | PBI | |
Security Exchange Name | NYSE | |
6.70% Notes due 2043 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 6.7% Notes due 2043 | |
Trading Symbol | PBI.PRB | |
Security Exchange Name | NYSE |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Revenue | $ 891,898 | $ 790,125 | $ 2,525,658 | $ 2,373,782 | |
Costs and expenses: | |||||
Selling, general and administrative | 238,618 | 254,092 | 720,882 | 757,228 | |
Research and development | 9,255 | 12,272 | 28,838 | 38,421 | |
Restructuring charges and asset impairments | 3,766 | 47,017 | 12,505 | 56,616 | |
Goodwill impairment | 0 | 0 | 198,169 | 0 | |
Interest expense, net | 27,175 | 28,704 | 79,504 | 84,325 | |
Other components of net pension and postretirement (income) cost | (109) | (882) | 126 | (3,138) | |
Other (income) expense | (6,325) | 667 | 9,787 | 18,350 | |
Total costs and expenses | 880,571 | 809,675 | 2,726,189 | 2,355,021 | |
Income (loss) from continuing operations before taxes | 11,327 | (19,550) | (200,531) | 18,761 | |
Provision (benefit) for income taxes | 554 | (24,895) | 7,540 | (13,351) | |
Income (loss) from continuing operations | 10,773 | 5,345 | (208,071) | 32,112 | |
Income (loss) from discontinued operations, net of tax | 616 | (8,470) | 7,648 | (14,199) | |
Net income (loss) | $ 11,389 | $ (3,125) | $ (200,423) | $ 17,913 | |
Basic earnings (loss) per share: | |||||
Continuing operations (in dollars per share) | [1] | $ 0.06 | $ 0.03 | $ (1.21) | $ 0.18 |
Discontinued operations (in dollars per share) | [1] | 0 | (0.05) | 0.04 | (0.08) |
Net (loss) income (in dollars per share) | [1] | 0.07 | (0.02) | (1.17) | 0.10 |
Diluted earnings (loss) per share: | |||||
Continuing operations (in dollars per share) | [1] | 0.06 | 0.03 | (1.21) | 0.18 |
Discontinued operations (in dollars per share) | [1] | 0 | (0.05) | 0.04 | (0.08) |
Net (loss) income (in dollars per share) | [1] | $ 0.07 | $ (0.02) | $ (1.17) | $ 0.10 |
Business services | |||||
Revenue from contracts with customers | $ 550,954 | $ 419,101 | $ 1,524,323 | $ 1,243,609 | |
Revenue | 550,954 | 419,101 | 1,524,323 | 1,243,609 | |
Costs and expenses: | |||||
Cost of products and sales | 482,965 | 338,519 | 1,311,941 | 1,003,483 | |
Support services | |||||
Revenue from contracts with customers | 117,519 | 126,274 | 353,320 | 382,578 | |
Revenue | 117,519 | 126,274 | 353,320 | 382,578 | |
Costs and expenses: | |||||
Cost of products and sales | 37,647 | 41,086 | 114,132 | 123,453 | |
Financing | |||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 | |
Revenue | 86,218 | 90,577 | 260,758 | 280,039 | |
Costs and expenses: | |||||
Cost of products and sales | 11,626 | 11,026 | 36,054 | 33,433 | |
Equipment sales | |||||
Revenue from contracts with customers | 17,935 | 19,062 | 49,556 | 59,739 | |
Revenue | 79,572 | 89,618 | 213,682 | 264,956 | |
Costs and expenses: | |||||
Cost of equipment sales | 59,766 | 59,859 | 165,045 | 182,094 | |
Supplies | |||||
Revenue from contracts with customers | 39,635 | 44,818 | 118,117 | 142,261 | |
Revenue | 39,635 | 44,818 | 118,117 | 142,261 | |
Costs and expenses: | |||||
Cost of products and sales | 10,132 | 12,225 | 30,751 | 37,533 | |
Rentals | |||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 | |
Revenue | 18,000 | 19,737 | 55,458 | 60,339 | |
Costs and expenses: | |||||
Cost of products and sales | $ 6,055 | $ 5,090 | $ 18,455 | $ 23,223 | |
[1] | The sum of the earnings per share amounts may not equal the totals due to rounding. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ 11,389 | $ (3,125) | $ (200,423) | $ 17,913 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation, net of tax of $1,621, $(655), $(91) and $(1,078), respectively | 22,676 | (27,962) | 5,040 | (6,584) |
Net unrealized (loss) gain on cash flow hedges, net of tax of $(317), $51, $(796) and $27, respectively | (957) | 149 | (2,402) | 78 |
Net unrealized (loss) gain on investment securities, net of tax of $(2,716), $509, $(1,816) and $2,573, respectively | (8,191) | 1,487 | (5,476) | 7,516 |
Amortization of pension and postretirement costs, net of tax benefits of 2,875, 2,633, 9,027 and 7,406, respectively | 9,162 | 7,552 | 29,409 | 21,499 |
Other comprehensive income (loss), net of tax | 22,690 | (18,774) | 26,571 | 22,509 |
Comprehensive income (loss) | $ 34,079 | $ (21,899) | $ (173,852) | $ 40,422 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation, tax | $ 1,621 | $ (655) | $ (91) | $ (1,078) |
Net unrealized gain (loss) on cash flow hedges, tax | (317) | 51 | (796) | 27 |
Net unrealized gain on investment securities, tax | (2,716) | 509 | (1,816) | 2,573 |
Amortization of pension and postretirement costs, tax | $ 2,875 | $ 2,633 | $ 9,027 | $ 7,406 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 799,177 | $ 924,442 |
Short-term investments (includes $21,185 and $35,879, respectively, reported at fair value) | 21,185 | 115,879 |
Accounts and other receivables (net of allowance of $29,669 and $17,830, respectively) | 348,565 | 373,471 |
Short-term finance receivables (net of allowance of $21,289 and $12,556, respectively) | 559,148 | 629,643 |
Inventories | 66,974 | 68,251 |
Current income taxes | 11,477 | 5,565 |
Other current assets and prepayments | 115,981 | 101,601 |
Assets of discontinued operations | 0 | 17,229 |
Total current assets | 1,922,507 | 2,236,081 |
Property, plant and equipment, net | 367,466 | 376,177 |
Rental property and equipment, net | 40,352 | 41,225 |
Long-term finance receivables (net of allowance of $16,779 and $7,095 respectively) | 587,548 | 625,487 |
Goodwill | 1,142,144 | 1,324,179 |
Intangible assets, net | 167,493 | 190,640 |
Operating lease assets | 213,490 | 200,752 |
Noncurrent income taxes | 69,305 | 71,903 |
Other assets (includes $418,100 and $230,442, respectively, reported at fair value) | 533,726 | 400,456 |
Total assets | 5,044,031 | 5,466,900 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 760,363 | 793,690 |
Customer deposits at Pitney Bowes Bank | 610,582 | 591,118 |
Current operating lease liabilities | 38,007 | 36,060 |
Current portion of long-term debt | 63,509 | 20,108 |
Advance billings | 102,919 | 101,920 |
Current income taxes | 2,527 | 17,083 |
Liabilities of discontinued operations | 0 | 9,713 |
Total current liabilities | 1,577,907 | 1,569,692 |
Long-term debt | 2,531,712 | 2,719,614 |
Deferred taxes on income | 279,526 | 274,435 |
Tax uncertainties and other income tax liabilities | 40,642 | 38,834 |
Noncurrent operating lease liabilities | 192,789 | 177,711 |
Other noncurrent liabilities | 342,330 | 400,518 |
Total liabilities | 4,964,906 | 5,180,804 |
Commitments and contingencies (See Note 14) | ||
Stockholders’ equity: | ||
Common stock, $1 par value (480,000,000 shares authorized; 323,337,912 shares issued) | 323,338 | 323,338 |
Additional paid-in capital | 67,512 | 98,748 |
Retained earnings | 5,190,914 | 5,438,930 |
Accumulated other comprehensive loss | (813,572) | (840,143) |
Treasury stock, at cost (151,413,053 and 152,888,969 shares, respectively) | (4,689,067) | (4,734,777) |
Total stockholders’ equity | 79,125 | 286,096 |
Total liabilities and stockholders’ equity | $ 5,044,031 | $ 5,466,900 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Short term investments, fair value | $ 21,185 | $ 35,879 |
Allowance for doubtful accounts | 29,669 | 17,830 |
Short-term finance receivables allowance | 21,289 | 12,556 |
Long-term finance receivables allowance | 16,779 | 7,095 |
Other assets, fair value | $ 418,100 | $ 230,442 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 480,000,000 | 480,000,000 |
Common stock, shares issued (in shares) | 323,337,912 | 323,337,912 |
Treasury stock (in shares) | 151,413,053 | 152,888,969 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (200,423) | $ 17,913 |
(Income) loss from discontinued operations, net of tax | (7,648) | 14,199 |
Restructuring payments | (15,869) | (18,845) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 120,403 | 118,514 |
Allowance for credit losses | 35,400 | 22,131 |
Stock-based compensation | 15,236 | 15,867 |
Restructuring charges and asset impairments | 12,505 | 56,616 |
Amortization of debt fees | 7,962 | 8,014 |
Goodwill impairment | 198,169 | 0 |
Loss on extinguishment of debt | 36,987 | 667 |
Gain on sale of investments | (21,969) | 0 |
Loss on sale of business | 0 | 17,683 |
Changes in operating assets and liabilities, net of acquisitions/divestitures: | ||
Increase in accounts receivable | (8,064) | (248) |
Decrease in finance receivables | 85,593 | 25,300 |
Decrease (increase) in inventories | 1,051 | (14,559) |
Increase in other current assets and prepayments | (18,400) | (30,546) |
Increase in accounts payable and accrued liabilities | (1,047) | 892 |
Increase (decrease) in current and noncurrent income taxes | 21,682 | (30,401) |
Increase (decrease) in advance billings | 687 | (3,802) |
Decrease in pension and retiree medical liabilities | (25,095) | (39,231) |
Other, net | (8,113) | 6,262 |
Net cash provided by operating activities - continuing operations | 229,047 | 166,426 |
Net cash (used in) provided by operating activities - discontinued operations | (38,423) | 15,858 |
Net cash provided by operating activities | 190,624 | 182,284 |
Cash flows from investing activities: | ||
Capital expenditures | (80,787) | (95,221) |
Purchases of available-for-sale securities | (392,427) | (45,178) |
Proceeds from sales/maturities of available-for-sale securities | 241,924 | 78,024 |
Net activity from short-term and other investments | 68,464 | (92,418) |
Acquisitions, net of cash acquired | (6,608) | (22,100) |
Sale of other investments (See Note 8) | 58,248 | 0 |
Increase in customer deposits at Pitney Bowes Bank | 19,464 | 3,125 |
Other investing activities | (1,511) | (9,341) |
Net cash used in investing activities - continuing operations | (93,233) | (183,109) |
Net cash used in investing activities - discontinued operations | (2,502) | (18,572) |
Net cash used in investing activities - continuing operations | (95,735) | (201,681) |
Cash flows from financing activities: | ||
Proceeds from the issuance of long-term debt | 916,544 | 0 |
Principal payments of long-term debt | (1,072,260) | (202,640) |
Premiums and fees paid to extinguish debt | (32,645) | 0 |
Dividends paid to stockholders | (25,693) | (26,854) |
Common stock repurchases | 0 | (105,000) |
Other financing activities | (3,318) | 7,302 |
Net cash used in financing activities | (217,372) | (327,192) |
Effect of exchange rate changes on cash and cash equivalents | (2,782) | (5,822) |
Change in cash and cash equivalents | (125,265) | (352,411) |
Cash and cash equivalents at beginning of period | 924,442 | 867,262 |
Cash and cash equivalents at end of period | 799,177 | 514,851 |
Cash interest paid | 115,143 | 110,943 |
Cash income tax payments, net of refunds | $ 19,861 | $ 25,527 |
Description of Business and Bas
Description of Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation Description of Business Pitney Bowes Inc. (we, us, our, or the company) is a global technology company providing commerce solutions that power billions of transactions. Clients around the world rely on the accuracy and precision delivered by our equipment, solutions, analytics, and application programming interface technology in the areas of ecommerce fulfillment, shipping and returns, cross-border ecommerce, office mailing and shipping, presort services and financing. Pitney Bowes Inc. was incorporated in the state of Delaware in 1920. For more information about us, our products, services and solutions, visit www.pitneybowes.com . Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and the instructions to Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In addition, the December 31, 2019 Condensed Consolidated Balance Sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. In management's opinion, all adjustments, consisting only of normal recurring adjustments, considered necessary to fairly state our financial position, results of operations and cash flows for the periods presented have been included. Operating results for the periods presented are not necessarily indicative of the results that may be expected for any other interim period or for the year ending December 31, 2020, particularly in light of the novel coronavirus pandemic (COVID-19) and its effect on global businesses and economies. These statements should be read in conjunction with the financial statements and notes thereto included in our Annual Report to Stockholders on Form 10-K for the year ended December 31, 2019 (2019 Annual Report). Accounts and other receivables includes other net receivables of $60 million at September 30, 2020 and $91 million at December 31, 2019. In January 2019, we sold the direct operations and moved to a dealer model in six smaller international markets within Sending Technology Solutions (SendTech Solutions). Other receivables includes gross receivables of $20 million related to these direct operations. Risks and Uncertainties The effects of COVID-19 on global economies and businesses continues to impact how we conduct business and our operating results, financial position and cash flows. Its impact on our business remains unpredictable and accordingly, we are not able to reasonably estimate the full extent of COVID-19 on our operating results, financial position and cash flows. We assessed certain accounting matters that require the use of estimates, assumptions and consideration of forecasted financial information in context with the known and projected future impacts of COVID-19. The most significant impacts were to our allowance for credit losses (see Accounting Pronouncements Adopted in 2020 below) and the carrying value of goodwill (see Note 8). Actual results could differ significantly from our estimates and assumptions, possibly resulting in additional impairments or other charges. Accounting Pronouncements Adopted in 2020 Effective January 1, 2020, we adopted Accounting Standards Update (ASU) 2016-13, Financial Instruments - Credit Losses . We adopted this standard using the modified retrospective transition approach with a cumulative effect adjustment to retained earnings. The ASU applies to financial assets measured at amortized cost, including finance receivables, trade and other receivables and investments in debt securities classified as available-for-sale and held-to-maturity. The ASU replaces the current incurred loss impairment model that recognizes losses when a probable threshold is met with a requirement to recognize lifetime expected credit losses immediately when a financial asset is originated or purchased. The models to estimate credit losses are required to be based on historical loss experience, current conditions, reasonable and supportable forecasts and current economic outlook. The adoption of the standard resulted in an increase in the opening reserve balance for accounts and other receivables of $15 million and the opening reserve balance for finance receivables of $10 million and a net reduction to retained earnings of $22 million. The impact of COVID-19 on global businesses and economies resulted in an increased probability of recessionary conditions, delinquency rates and business bankruptcy resulting in an additional $11 million provision in the first quarter of 2020. Through September 30, 2020, our credit loss provision was $35 million compared to $22 million through September 30, 2019. Activity in the allowance for credit losses for accounts and other receivables for the nine months ended September 30, 2020 is presented below. See Note 7 for additional information pertaining to our finance receivables. Balance at December 31, 2019 Cumulative effect of accounting change Amounts charged to expense Write-offs, recoveries and currency impact Balance at Allowance for credit losses $ 17,830 $ 15,336 $ 16,856 $ (20,353) $ 29,669 Accounts receivable greater than 365 days past due, subject to certain exceptions, are written off against the allowance, although collection efforts may continue. Accounting Pronouncements Not Yet Adopted In December 2019, the Financial Accounting Standards Board (FASB) issued ASU 2019-12, Simplifying the Accounting for Income Taxes . The ASU simplifies the accounting for income taxes by removing certain exceptions to the general principles and also clarifies and amends existing guidance. This standard is effective beginning January 1, 2021, with early adoption permitted. We do not expect this standard to have a material impact on our consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregated Revenue The following tables disaggregate our revenue by source and timing of recognition: Three Months Ended September 30, 2020 Global Ecommerce Presort Services SendTech Solutions Revenue from products and services Revenue from leasing transactions and financing Total consolidated revenue Major products/service lines Business services $ 409,981 $ 127,705 $ 13,268 $ 550,954 $ — $ 550,954 Support services — — 117,519 117,519 — 117,519 Financing — — — — 86,218 86,218 Equipment sales — — 17,935 17,935 61,637 79,572 Supplies — — 39,635 39,635 — 39,635 Rentals — — — — 18,000 18,000 Subtotal 409,981 127,705 188,357 726,043 $ 165,855 $ 891,898 Revenue from leasing transactions and financing Financing — — 86,218 86,218 Equipment sales — — 61,637 61,637 Rentals — — 18,000 18,000 Total revenue $ 409,981 $ 127,705 $ 354,212 $ 891,898 Timing of revenue recognition from products and services Products/services transferred at a point in time $ — $ — $ 73,602 $ 73,602 Products/services transferred over time 409,981 127,705 114,755 652,441 Total $ 409,981 $ 127,705 $ 188,357 $ 726,043 Three Months Ended September 30, 2019 Global Ecommerce Presort Services SendTech Solutions Revenue from products and services Revenue from leasing transactions and financing Total consolidated revenue Major products/service lines Business services $ 278,995 $ 131,483 $ 8,623 $ 419,101 $ — $ 419,101 Support services — — 126,274 126,274 — 126,274 Financing — — — — 90,577 90,577 Equipment sales — — 19,062 19,062 70,556 89,618 Supplies — — 44,818 44,818 — 44,818 Rentals — — — — 19,737 19,737 Subtotal 278,995 131,483 198,777 609,255 $ 180,870 $ 790,125 Revenue from leasing transactions and financing Financing — — 90,577 90,577 Equipment sales — — 70,556 70,556 Rentals — — 19,737 19,737 Total revenue $ 278,995 $ 131,483 $ 379,647 $ 790,125 Timing of revenue recognition from products and services Products/services transferred at a point in time $ — $ — $ 81,547 $ 81,547 Products/services transferred over time 278,995 131,483 117,230 527,708 Total $ 278,995 $ 131,483 $ 198,777 $ 609,255 Nine Months Ended September 30, 2020 Global Ecommerce Presort Services SendTech Solutions Revenue from products and services Revenue from leasing transactions and financing Total consolidated revenue Major products/service lines Business services $ 1,100,757 $ 386,552 $ 37,014 $ 1,524,323 $ — $ 1,524,323 Support services — — 353,320 353,320 — 353,320 Financing — — — — 260,758 260,758 Equipment sales — — 49,556 49,556 164,126 213,682 Supplies — — 118,117 118,117 — 118,117 Rentals — — — — 55,458 55,458 Subtotal 1,100,757 386,552 558,007 2,045,316 $ 480,342 $ 2,525,658 Revenue from leasing transactions and financing Financing — — 260,758 260,758 Equipment sales — — 164,126 164,126 Rentals — — 55,458 55,458 Total revenue $ 1,100,757 $ 386,552 $ 1,038,349 $ 2,525,658 Timing of revenue recognition from products and services Products/services transferred at a point in time $ — $ — $ 210,726 $ 210,726 Products/services transferred over time 1,100,757 386,552 347,281 1,834,590 Total $ 1,100,757 $ 386,552 $ 558,007 $ 2,045,316 Nine Months Ended September 30, 2019 Global Ecommerce Presort Services SendTech Solutions Revenue from products and services Revenue from leasing transactions and financing Total consolidated revenue Major products/service lines Business services $ 827,568 $ 394,468 $ 21,573 $ 1,243,609 $ — $ 1,243,609 Support services — — 382,578 382,578 — 382,578 Financing — — — — 280,039 280,039 Equipment sales — — 59,739 59,739 205,217 264,956 Supplies — — 142,261 142,261 — 142,261 Rentals — — — — 60,339 60,339 Subtotal 827,568 394,468 606,151 1,828,187 $ 545,595 $ 2,373,782 Revenue from leasing transactions and financing Financing — — 280,039 280,039 Equipment sales — — 205,217 205,217 Rentals — — 60,339 60,339 Total revenue $ 827,568 $ 394,468 $ 1,151,746 $ 2,373,782 Timing of revenue recognition from products and services Products/services transferred at a point in time $ — $ — $ 251,214 $ 251,214 Products/services transferred over time 827,568 394,468 354,937 1,576,973 Total $ 827,568 $ 394,468 $ 606,151 $ 1,828,187 Our performance obligations for revenue from products and services are as follows: Business services includes providing mail processing services, shipping subscription solutions, fulfillment, delivery and return services and cross-border solutions. Revenue for mail processing services, fulfillment, delivery and return services and cross-border solutions is recognized over time as the services are provided and revenue for shipping subscription solutions is recognized ratably over the contract period. Contract terms for these services range from one to five years followed by annual renewal periods. Support services includes providing maintenance, professional and subscription services for our mailing equipment and professional services for our shipping solutions. Contract terms range from one Equipment sales generally includes the sale of mailing and shipping equipment, excluding sales-type leases. We recognize revenue upon delivery for self-install equipment and upon acceptance or installation for other equipment. We provide a warranty that our equipment is free of defects and meets stated specifications. The warranty is not considered a separate performance obligation. Supplies revenue is recognized upon delivery. Revenue from leasing transactions and financing includes revenue from sales-type and operating leases, finance income, late fees and investment income, gains and losses at Pitney Bowes Bank. Advance Billings from Contracts with Customers Balance sheet location September 30, 2020 December 31, 2019 Increase/ (decrease) Advance billings, current Advance billings $ 94,454 $ 92,464 $ 1,990 Advance billings, noncurrent Other noncurrent liabilities $ 1,117 $ 1,245 $ (128) Advance billings are recorded when cash payments are due in advance of our performance. Revenue is recognized ratably over the contract term. Items in advance billings primarily relate to support services on mailing equipment. Revenue recognized during the period includes $78 million of advance billings at the beginning of the period. Advance billings at September 30, 2020 and December 31, 2019 also includes $8 million and $9 million, respectively, from leasing transactions. Future Performance Obligations Future performance obligations include revenue streams bundled with our leasing contracts, primarily maintenance and subscription services. The transaction prices allocated to future performance obligations will be recognized as follows: Remainder of 2020 2021 2022-2025 Total SendTech Solutions $ 73,963 $ 263,673 $ 388,235 $ 725,871 The table above does not include revenue related to performance obligations for contracts with terms less than 12 months and expected consideration for those performance obligations where revenue is recognized based on the amount billable to the customer. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Our reportable segments are Global Ecommerce, Presort Services and SendTech Solutions. Global Ecommerce and Presort Services comprise the Commerce Services reporting group. The principal products and services of each reportable segment are as follows: Global Ecommerce: Includes the revenue and related expenses from products and services that facilitate domestic retail and ecommerce shipping solutions, including fulfillment and returns, and global cross-border ecommerce transactions. Presort Services : Includes revenue and related expenses from sortation services to qualify large volumes of First Class Mail, Marketing Mail and Marketing Mail Flats and Bound Printed Matter for postal worksharing discounts. SendTech Solutions: Includes the revenue and related expenses from physical and digital mailing and shipping technology solutions, financing, services, supplies and other applications to help simplify and save on the sending, tracking and receiving of letters, parcels and flats. Management measures segment profitability and performance using segment earnings before interest and taxes (EBIT). Segment EBIT is calculated by deducting from segment revenue the related costs and expenses attributable to the segment. Segment EBIT excludes interest, taxes, general corporate expenses, restructuring charges, asset impairment charges and other items not allocated to a particular business segment. Management believes that it provides investors a useful measure of operating performance and underlying trends of the business. Segment EBIT may not be indicative of our overall consolidated performance and therefore, should be read in conjunction with our consolidated results of operations. The following tables provide information about our reportable segments and reconciliation of segment EBIT to net income (loss). Revenue Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Global Ecommerce $ 409,981 $ 278,995 $ 1,100,757 $ 827,568 Presort Services 127,705 131,483 386,552 394,468 Commerce Services 537,686 410,478 1,487,309 1,222,036 SendTech Solutions 354,212 379,647 1,038,349 1,151,746 Total revenue $ 891,898 $ 790,125 $ 2,525,658 $ 2,373,782 EBIT Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Global Ecommerce $ (19,757) $ (21,793) $ (68,126) $ (51,969) Presort Services 14,481 17,687 42,758 48,215 Commerce Services (5,276) (4,106) (25,368) (3,754) SendTech Solutions 112,599 130,954 323,429 378,095 Total segment EBIT 107,323 126,848 298,061 374,341 Reconciliation of Segment EBIT to net income (loss): Unallocated corporate expenses (53,429) (58,277) (146,640) (160,283) Restructuring charges and asset impairments (3,766) (47,017) (12,505) (56,616) Interest expense, net (38,801) (39,730) (115,558) (117,758) Gain on sale of equity investment — — 11,908 — Goodwill impairment — — (198,169) — Loss on extinguishment of debt — (667) (36,987) (667) Loss on dispositions — — — (17,683) Transaction costs — (707) (641) (2,573) (Provision) benefit for income taxes (554) 24,895 (7,540) 13,351 Income (loss) from continuing operations 10,773 5,345 (208,071) 32,112 Income (loss) from discontinued operations, net of tax 616 (8,470) 7,648 (14,199) Net income (loss) $ 11,389 $ (3,125) $ (200,423) $ 17,913 |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations Discontinued operations includes the Software Solutions business, sold in December 2019, with the exception of the software business in Australia, which closed in January 2020, and the Production Mail business, sold in July 2018. Selected financial information of discontinued operations is as follows: Three Months Ended September 30, 2020 Three Months Ended September 30, 2019 Software Solutions Production Mail Total Software Solutions Production Mail Total Revenue $ — $ — $ — $ 73,620 $ — $ 73,620 Earnings from discontinued operations $ — $ — $ — $ 8,633 $ — $ 8,633 Gain (loss) on sale 474 — 474 (12,447) (5,710) (18,157) Income (loss) from discontinued operations before taxes $ 474 $ — 474 $ (3,814) $ (5,710) (9,524) Tax benefit (142) (1,054) Income (loss) from discontinued operations, net of tax $ 616 $ (8,470) Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 Software Solutions Production Mail Total Software Solutions Production Mail Total Revenue $ — $ — $ — $ 219,144 $ — $ 219,144 Earnings (loss) from discontinued operations $ — $ — $ — $ 13,334 $ (663) $ 12,671 Gain (loss) on sale 7,343 (167) 7,176 (14,211) (14,967) (29,178) Income (loss) from discontinued operations before taxes $ 7,343 $ (167) 7,176 $ (877) $ (15,630) (16,507) Tax benefit (472) (2,308) Income (loss) from discontinued operations, net of tax $ 7,648 $ (14,199) Assets of discontinued operations and liabilities of discontinued operations at December 31, 2019 includes the assets and liabilities of the software business in Australia. |
Earnings per Share (EPS)
Earnings per Share (EPS) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings per Share (EPS) | Earnings per Share (EPS) Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Numerator: Income (loss) from continuing operations $ 10,773 $ 5,345 $ (208,071) $ 32,112 Income (loss) from discontinued operations, net of tax 616 (8,470) 7,648 (14,199) Net income (loss) (numerator for diluted EPS) 11,389 (3,125) (200,423) 17,913 Less: Preference stock dividend — — — 8 Income (loss) attributable to common stockholders (numerator for basic EPS) $ 11,389 $ (3,125) $ (200,423) $ 17,905 Denominator: Weighted-average shares used in basic EPS 171,828 170,326 171,388 178,048 Dilutive effect of common stock equivalents (1) 2,876 875 — 1,048 Weighted-average shares used in diluted EPS 174,704 171,201 171,388 179,096 Basic earnings (loss) per share (2) : Continuing operations $ 0.06 $ 0.03 $ (1.21) $ 0.18 Discontinued operations — (0.05) 0.04 (0.08) Net income (loss) $ 0.07 $ (0.02) $ (1.17) $ 0.10 Diluted earnings (loss) per share (2) : Continuing operations $ 0.06 $ 0.03 $ (1.21) $ 0.18 Discontinued operations — (0.05) 0.04 (0.08) Net income (loss) $ 0.07 $ (0.02) $ (1.17) $ 0.10 Common stock equivalents excluded from calculation of diluted earnings per share because their impact would be anti-dilutive: 14,828 16,182 15,855 16,166 (1) Dilutive effect of common stock equivalents for the nine months ended September 30, 2020 was 1,604 shares; however, this amount was not included in the calculation of diluted earnings per share as the impact would have been anti-dilutive. (2) The sum of the earnings per share amounts may not equal the totals due to rounding. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined on the last-in, first-out (LIFO) basis for most U.S. inventories and the first-in, first-out (FIFO) basis for most non-U.S. inventories. Inventories consisted of the following: September 30, December 31, Raw materials $ 16,174 $ 13,514 Supplies and service parts 22,628 21,840 Finished products 31,957 36,969 Inventory at FIFO cost 70,759 72,323 Excess of FIFO cost over LIFO cost (3,785) (4,072) Total inventory, net $ 66,974 $ 68,251 |
Finance Assets and Lessor Opera
Finance Assets and Lessor Operating Leases | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Finance Assets and Lessor Operating Leases | Finance Assets and Lessor Operating Leases Finance Assets Finance receivables are comprised of sales-type lease receivables and unsecured revolving loan receivables. Sales-type lease receivables are generally due in monthly, quarterly or semi-annual installments over periods ranging from three Finance receivables consisted of the following: September 30, 2020 December 31, 2019 North America International Total North America International Total Sales-type lease receivables Gross finance receivables $ 981,475 $ 201,590 $ 1,183,065 $ 1,055,852 $ 224,202 $ 1,280,054 Unguaranteed residual values 37,191 11,609 48,800 41,934 11,789 53,723 Unearned income (270,499) (58,811) (329,310) (319,281) (65,888) (385,169) Allowance for credit losses (25,886) (4,902) (30,788) (10,920) (2,085) (13,005) Net investment in sales-type lease receivables 722,281 149,486 871,767 767,585 168,018 935,603 Loan receivables Loan receivables 259,832 22,377 282,209 298,247 27,926 326,173 Allowance for credit losses (6,792) (488) (7,280) (5,906) (740) (6,646) Net investment in loan receivables 253,040 21,889 274,929 292,341 27,186 319,527 Net investment in finance receivables $ 975,321 $ 171,375 $ 1,146,696 $ 1,059,926 $ 195,204 $ 1,255,130 Maturities of gross sales-type lease receivables and gross loan receivables at September 30, 2020 were as follows: Sales-type Lease Receivables Loan Receivables North America International Total North America International Total Remaining for year ending December 31, 2020 $ 114,724 $ 35,721 $ 150,445 $ 215,593 $ 22,377 $ 237,970 Year ending December 31, 2021 359,198 75,057 434,255 13,314 — 13,314 Year ending December 31, 2022 259,729 49,422 309,151 11,507 — 11,507 Year ending December 31, 2023 155,254 27,279 182,533 6,394 — 6,394 Year ending December 31, 2024 77,034 11,000 88,034 7,023 — 7,023 Thereafter 15,536 3,111 18,647 6,001 — 6,001 Total $ 981,475 $ 201,590 $ 1,183,065 $ 259,832 $ 22,377 $ 282,209 Aging of Receivables The aging of gross finance receivables was as follows: September 30, 2020 Sales-type Lease Receivables Loan Receivables North International North International Total Past due amounts 0 - 90 days $ 961,346 $ 199,565 $ 254,802 $ 22,096 $ 1,437,809 Past due amounts > 90 days 20,129 2,025 5,030 281 27,465 Total $ 981,475 $ 201,590 $ 259,832 $ 22,377 $ 1,465,274 Past due amounts > 90 days Still accruing interest $ 3,365 $ 699 $ 1,461 $ 58 $ 5,583 Not accruing interest 16,764 1,326 3,569 223 21,882 Total $ 20,129 $ 2,025 $ 5,030 $ 281 $ 27,465 December 31, 2019 Sales-type Lease Receivables Loan Receivables North International North International Total Past due amounts 0 - 90 days $ 1,032,912 $ 220,819 $ 294,001 $ 27,697 $ 1,575,429 Past due amounts > 90 days 22,940 3,383 4,246 229 30,798 Total $ 1,055,852 $ 224,202 $ 298,247 $ 27,926 $ 1,606,227 Past due amounts > 90 days Still accruing interest $ 4,835 $ 1,081 $ 2,094 $ 121 $ 8,131 Not accruing interest 18,105 2,302 2,152 108 22,667 Total $ 22,940 $ 3,383 $ 4,246 $ 229 $ 30,798 Allowance for Credit Losses We estimate an allowance for credit losses based on historical loss experience, the nature of our portfolios, adverse situations that may affect a client's ability to pay, current conditions, reasonable and supportable forecasts and current economic outlook. Credit losses are estimated at the portfolio level based on asset type and geographic market. Historical loss experience was based on actual loss rates over the average term of the asset of five years for sales-type lease receivables and three years for loan receivables (including accrued interest). Additionally, we evaluate current conditions and review third-party economic forecasts on a quarterly basis to determine the impact on the allowance for credit losses. The assumptions used in determining an estimate of credit losses are inherently subjective and actual results may differ significantly from estimated reserves. The allowance for credit losses at September 30, 2020 considers the current economic conditions and resulting impact on a client's future ability to pay amounts due. We establish credit approval limits based on the credit quality of the client and the type of equipment financed. Our policy is to discontinue revenue recognition for lease receivables that are more than 120 days past due and for loan receivables that are more than 90 days past due. We resume revenue recognition when the client's payments reduce the account aging to less than 60 days past due. Finance receivables deemed uncollectible are written off against the allowance after all collection efforts have been exhausted and management deems the account to be uncollectible. We monitor delinquency rates and have experienced a slight increase in our delinquencies during this current economic situation. However, we believe that our finance receivable credit risk is low because of the geographic and industry diversification of our clients and small account balances for most of our clients. Activity in the allowance for credit losses for finance receivables was as follows: Sales-type Lease Receivables Loan Receivables North International North International Total Balance at December 31, 2019 $ 10,920 $ 2,085 $ 5,906 $ 740 $ 19,651 Cumulative effect of accounting change 9,271 1,750 (1,116) (402) 9,503 Amounts charged to expense 10,009 1,314 6,792 429 18,544 Write-offs (5,950) (548) (7,370) (343) (14,211) Recoveries 1,488 91 2,399 1 3,979 Currency impact 148 210 181 63 602 Balance at September 30, 2020 $ 25,886 $ 4,902 $ 6,792 $ 488 $ 38,068 Sales-type Lease Receivables Loan Receivables North International North International Total Balance at January 1, 2019 $ 10,253 $ 2,355 $ 6,777 $ 837 $ 20,222 Amounts charged to expense 4,587 801 3,547 440 9,375 Write-offs (5,153) (842) (6,882) (608) (13,485) Recoveries 1,286 157 2,746 9 4,198 Currency impact 199 (254) (172) 41 (186) Balance at September 30, 2019 $ 11,172 $ 2,217 $ 6,016 $ 719 $ 20,124 Credit Quality The extension of credit and management of credit lines to new and existing clients uses a combination of a client's credit score, where available, and a detailed manual review of their financial condition and payment history or an automated process for certain small dollar applications. Once credit is granted, the payment performance of the client is managed through automated collections processes and is supplemented with direct follow up should an account become delinquent. We have robust automated collections and extensive portfolio management processes to ensure that our global strategy is executed, collection resources are allocated appropriately and enhanced tools and processes are implemented as needed. We use a third party to score the majority of the North America portfolio on a quarterly basis using a commercial credit score. The relative scores are determined based on a number of factors, including financial information, payment history, company type and ownership structure. A fourth class is shown for accounts that are not scored. Absence of a score is not indicative of the credit quality of the account. The degree of risk (low, medium, high), as defined by the third party, refers to the relative risk that an account may become delinquent in the next 12 months. • Low risk accounts are companies with very good credit scores and are considered to approximate the top 30% of all commercial borrowers. • Medium risk accounts are companies with average to good credit scores and are considered to approximate the middle 40% of all commercial borrowers. • High risk accounts are companies with poor credit scores, are delinquent or are at risk of becoming delinquent and are considered to approximate the bottom 30% of all commercial borrowers. The table below shows the gross sales-type lease receivable and loan receivable balances by relative risk class and year of origination based on the relative scores of the accounts within each class. Sales Type Lease Receivables Loan Receivables Total 2020 2019 2018 2017 2016 Prior Low $ 187,763 $ 230,942 $ 178,224 $ 101,307 $ 37,346 $ 15,488 $ 185,709 $ 936,779 Medium 39,810 58,779 42,501 24,903 10,491 3,924 59,422 239,830 High 5,752 6,219 4,722 2,605 1,344 184 4,617 25,443 Not Scored 55,694 79,125 53,395 28,611 12,207 1,729 32,461 263,222 Total $ 289,019 $ 375,065 $ 278,842 $ 157,426 $ 61,388 $ 21,325 $ 282,209 $ 1,465,274 The majority of the Not Scored amounts above is within our International portfolio. We do not use a third party to score our International portfolio because the cost to do so is prohibitive, given that it is a localized process, and there is no single credit score model that covers all countries. International credit applications below $50 thousand are subjected to an automated review process. All other credit applications are manually reviewed. A manual review includes obtaining client financial information, credit reports and other available financial information. Approximately 80% of credit applications are approved or denied through the automated review process. Lease Income Lease income from sales-type leases was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Profit recognized at commencement (1) $ 29,169 $ 39,326 $ 80,349 $ 112,422 Interest income 33,654 56,522 101,969 174,045 Total lease income from sales-type leases $ 62,823 $ 95,848 $ 182,318 $ 286,467 (1) Lease contracts do not include variable lease payments. Lessor Operating Leases We also lease mailing equipment under operating leases with terms of one Remaining for year ending December 31, 2020 $ 17,351 Year ending December 31, 2021 36,396 Year ending December 31, 2022 13,688 Year ending December 31, 2023 7,172 Year ending December 31, 2024 2,100 Thereafter 399 Total $ 77,106 |
Intangible Assets, Goodwill and
Intangible Assets, Goodwill and Other Assets | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Goodwill and Other Assets | Intangible Assets, Goodwill and Other Assets Intangible Assets Intangible assets consisted of the following: September 30, 2020 December 31, 2019 Gross Accumulated Net Gross Accumulated Net Customer relationships $ 268,195 $ (108,338) $ 159,857 $ 265,665 $ (88,550) $ 177,115 Software & technology 31,600 (23,969) 7,631 31,600 (19,999) 11,601 Trademarks & other 13,324 (13,319) 5 13,324 (11,400) 1,924 Total intangible assets $ 313,119 $ (145,626) $ 167,493 $ 310,589 $ (119,949) $ 190,640 Amortization expense for the three months ended September 30, 2020 and 2019 was $8 million and $9 million, respectively, and amortization expense for the nine months ended September 30, 2020 and 2019 was $26 million and $27 million, respectively. Future amortization expense as of September 30, 2020 is shown in the table below. Actual amortization expense may differ due to, among other things, fluctuations in foreign currency exchange rates, impairments, acquisitions and accelerated amortization. Remaining for year ending December 31, 2020 $ 7,683 Year ending December 31, 2021 30,265 Year ending December 31, 2022 29,315 Year ending December 31, 2023 26,465 Year ending December 31, 2024 26,465 Thereafter 47,300 Total $ 167,493 Goodwill Changes in the carrying value of goodwill, by reporting segment, are shown in the table below. December 31, 2019 Impairment Acquisition Currency impact September 30, Global Ecommerce $ 609,431 $ (198,169) $ — $ — $ 411,262 Presort Services 212,529 — 8,463 — 220,992 Commerce Services 821,960 (198,169) 8,463 — 632,254 SendTech Solutions 502,219 — — 7,671 509,890 Total goodwill $ 1,324,179 $ (198,169) $ 8,463 $ 7,671 $ 1,142,144 In the first quarter of 2020, we determined that the estimated fair value of the Global Ecommerce reporting unit was less than its carrying value and recorded a non-cash, pre-tax goodwill impairment charge of $198 million. At December 31, 2019, the fair value of our Global Ecommerce business exceeded its carrying value by less than 20%. During the first quarter of 2020, our Global Ecommerce reporting unit experienced weaker than expected performance, due in part to the deteriorating macroeconomic conditions and uncertainty brought on by COVID-19, causing us to evaluate the Global Ecommerce goodwill for impairment. To test the Global Ecommerce goodwill for impairment, we determined the fair value of the Global Ecommerce reporting unit and compared it to the reporting unit's carrying value, including goodwill. We engaged a third-party to assist in the determination of the fair value of the reporting unit. The determination of fair value, and the resulting impairment charge, relied on internal projections developed using numerous estimates and assumptions that are inherently subject to significant uncertainties. These estimates and assumptions included revenue growth, profitability, cash flows, capital spending and other available information. The determination of fair value also incorporated a risk-adjusted discount rate, terminal growth rates and other assumptions that market participants may use. Changes in any of these estimates or assumptions could materially affect the determination of fair value and the associated goodwill impairment charge and could result in an additional impairment charge in the future. These estimates and assumptions are considered Level 3 inputs under the fair value hierarchy. Other Assets Other assets at September 30, 2020 and December 31, 2019 includes long-term investments of $426 million and $289 million, respectively. |
Fair Value Measurements and Der
Fair Value Measurements and Derivative Instruments | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Derivative Instruments | Fair Value Measurements and Derivative Instruments We measure certain financial assets and liabilities at fair value on a recurring basis. Fair value is a market-based measure considered from the perspective of a market participant rather than an entity-specific measure. An entity is required to classify certain assets and liabilities measured at fair value based on the following fair value hierarchy that prioritizes the inputs used to measure fair value: Level 1 – Unadjusted quoted prices in active markets for identical assets and liabilities. Level 2 – Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – Unobservable inputs that are supported by little or no market activity, may be derived from internally developed methodologies based on management’s best estimate of fair value and that are significant to the fair value of the asset or liability. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect its placement within the fair value hierarchy. The following tables show, by level within the fair value hierarchy, our financial assets and liabilities that are accounted for at fair value on a recurring basis. September 30, 2020 Level 1 Level 2 Level 3 Total Assets: Investment securities Money market funds $ 116,806 $ 440,493 $ — $ 557,299 Equity securities — 22,555 — 22,555 Commingled fixed income securities 1,720 19,537 — 21,257 Government and related securities 17,408 18,601 — 36,009 Corporate debt securities — 82,959 — 82,959 Mortgage-backed / asset-backed securities — 275,352 — 275,352 Derivatives Foreign exchange contracts — 2,603 — 2,603 Total assets $ 135,934 $ 862,100 $ — $ 998,034 Liabilities: Derivatives Interest rate swaps $ — $ (2,908) $ — $ (2,908) Foreign exchange contracts — (1,086) — (1,086) Total liabilities $ — $ (3,994) $ — $ (3,994) December 31, 2019 Level 1 Level 2 Level 3 Total Assets: Investment securities Money market funds $ 161,441 $ 240,364 $ — $ 401,805 Equity securities — 21,979 — 21,979 Commingled fixed income securities 1,656 18,404 — 20,060 Government and related securities 64,572 17,478 — 82,050 Corporate debt securities — 72,149 — 72,149 Mortgage-backed / asset-backed securities — 66,339 — 66,339 Derivatives Foreign exchange contracts — 3,256 — 3,256 Total assets $ 227,669 $ 439,969 $ — $ 667,638 Liabilities: Derivatives Foreign exchange contracts $ — $ (1,402) $ — $ (1,402) Total liabilities $ — $ (1,402) $ — $ (1,402) Investment Securities The valuation of investment securities is based on the market approach using inputs that are observable, or can be corroborated by observable data, in an active marketplace. The following information relates to our classification into the fair value hierarchy: • Money Market Funds: Money market funds typically invest in government securities, certificates of deposit, commercial paper and other highly liquid, low risk securities. Money market funds are principally used for overnight deposits and are classified as Level 1 when unadjusted quoted prices in active markets are available and as Level 2 when they are not actively traded on an exchange. • Equity Securities: Equity securities are comprised of mutual funds investing in U.S. and foreign stocks. These mutual funds are classified as Level 2. • Commingled Fixed Income Securities: Commingled fixed income securities are comprised of mutual funds that invest in a variety of fixed income securities, including securities of the U.S. government and its agencies, corporate debt, mortgage-backed securities and asset-backed securities. Fair value is based on the value of the underlying investments owned by each fund, minus its liabilities, divided by the number of shares outstanding, as reported by the fund manager. These mutual funds are classified as Level 1 when unadjusted quoted prices in active markets are available and as Level 2 when they are not actively traded on an exchange. • Government and Related Securities: Debt securities are classified as Level 1 where active, high volume trades for identical securities exist. Valuation adjustments are not applied to these securities. Debt securities are classified as Level 2 where fair value is determined using quoted market prices for similar securities or benchmarking model derived prices to quoted market prices and trade data for identical or comparable securities. • Corporate Debt Securities: Corporate debt securities are valued using recently executed comparable transactions, market price quotations or bond spreads for the same maturity as the security. These securities are classified as Level 2. • Mortgage-Backed Securities / Asset-Backed Securities: These securities are valued based on external pricing indices or external price/spread data. These securities are classified as Level 2. Derivative Securities • Foreign Exchange Contracts: The valuation of foreign exchange derivatives is based on the market approach using observable market inputs, such as foreign currency spot and forward rates and yield curves. We have not seen a material change in the creditworthiness of those banks acting as derivative counterparties. These securities are classified as Level 2. • Interest Rate Swaps: The valuation of interest rate swaps is based on an income approach using inputs that are observable or that can be derived from, or corroborated by, observable market data. These securities are classified as Level 2. Available-For-Sale Securities Available-for-sale securities are predominantly held at our wholly owned subsidiary, the Pitney Bowes Bank (the PB Bank). The PB Bank provides financing solutions to clients that rent or lease postage meters and purchase postage related supplies. The PB Bank also manages and invests excess undeployed deposits in bond investments. Investment securities classified as available-for-sale are recorded at fair value with changes in fair value due to market conditions (i.e., interest rates) recorded in accumulated other comprehensive income (AOCI), and changes in fair value due to credit conditions recorded in earnings. There were no unrealized losses due to credit losses charged to earnings through September 30, 2020. Available-for-sale securities consisted of the following: September 30, 2020 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Government and related securities $ 35,018 $ 144 $ (719) $ 34,443 Corporate debt securities 84,457 422 (1,920) 82,959 Commingled fixed income securities 1,699 21 — 1,720 Mortgage-backed / asset-backed securities 276,880 476 (2,004) 275,352 Total $ 398,054 $ 1,063 $ (4,643) $ 394,474 December 31, 2019 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Government and related securities $ 80,732 $ 1,358 $ (114) $ 81,976 Corporate debt securities 70,426 2,009 (286) 72,149 Commingled fixed income securities 1,675 — (19) 1,656 Mortgage-backed / asset-backed securities 65,679 960 (300) 66,339 Total $ 218,512 $ 4,327 $ (719) $ 222,120 Investment securities in a loss position were as follows: September 30, 2020 December 31, 2019 Fair Value Gross unrealized losses Fair Value Gross unrealized losses Less than 12 continuous months $ 314,145 $ 4,543 $ 52,521 $ 583 Greater than 12 continuous months 3,157 100 9,227 136 Total $ 317,302 $ 4,643 $ 61,748 $ 719 At September 30, 2020, approximately 30% of total securities in the investment portfolio were in a net loss position. We believe our allowance for credit losses on available-for-sale investment securities is adequate as our investments are primarily in highly liquid U.S. government and agency securities, high grade corporate bonds and municipal bonds. We have not recognized an impairment on investment securities in an unrealized loss position because we have the ability and intent to hold these securities until recovery of the unrealized losses or expect to receive the stated principal and interest at maturity. Scheduled maturities of available-for-sale securities at September 30, 2020 were as follows: Amortized cost Estimated fair value Within 1 year $ 19,299 $ 19,379 After 1 year through 5 years 9,354 9,553 After 5 years through 10 years 54,448 53,476 After 10 years 314,953 312,066 Total $ 398,054 $ 394,474 The scheduled maturities of mortgage-backed and asset-backed securities may not coincide with the actual payment, as borrowers have the right to prepay obligations. We have not experienced any significant write-offs in our investment portfolio. The majority of our mortgage-backed securities are either guaranteed or supported by the U.S. Government. We have no investments in inactive markets that would warrant a possible change in our pricing methods or classification within the fair value hierarchy. Held-to-Maturity Securities Held-to-maturity securities at September 30, 2020 and December 31, 2019, include $25 million and $383 million, respectively, of short-term, highly liquid time deposits. Due to the short-term nature of these securities, the carrying value approximates fair value. Derivative Instruments In the normal course of business, we are exposed to the impact of changes in foreign currency exchange rates and interest rates. We mitigate these exposures by following established risk management policies and procedures, including the use of derivatives. We use derivative instruments to limit the effects of exchange rate fluctuations on financial results and manage the cost of debt. We do not use derivatives for trading or speculative purposes. We record derivative instruments at fair value and the accounting for changes in the fair value depends on the intended use of the derivative, the resulting designation and the effectiveness of the instrument in offsetting the risk exposure it is designed to hedge. Foreign Exchange Contracts We enter into foreign exchange contracts to mitigate the currency risk associated with the anticipated purchase of inventory between affiliates and from third parties. These contracts are designated as cash flow hedges. The effective portion of the gain or loss on cash flow hedges is included in AOCI in the period that the change in fair value occurs and is reclassified to earnings in the period that the hedged item is recorded in earnings. No amount of ineffectiveness was recorded in earnings for these designated cash flow hedges. At September 30, 2020 and December 31, 2019, we had outstanding contracts associated with these anticipated transactions with notional amounts of $9 million and $7 million, respectively. Amounts included in AOCI at September 30, 2020 will be recognized in earnings within the next 12 months. Interest Rate Swaps We have interest rate swap agreements with an aggregate notional amount of $500 million that are designated as cash flow hedges. The fair value of the interest rate swaps is recorded as a derivative asset or liability at the end of each reporting period with the change in fair value reflected in AOCI. The fair value of derivative instruments was as follows: Designation of Derivatives Balance Sheet Location September 30, December 31, Derivatives designated as Foreign exchange contracts Other current assets and prepayments $ 15 $ 207 Accounts payable and accrued liabilities (154) (56) Interest rate swaps Other noncurrent liabilities (2,908) — Derivatives not designated as Foreign exchange contracts Other current assets and prepayments 2,588 3,049 Accounts payable and accrued liabilities (932) (1,346) Total derivative assets $ 2,603 $ 3,256 Total derivative liabilities (3,994) (1,402) Total net derivative (liability) asset $ (1,391) $ 1,854 Results of cash flow hedging relationships were as follows: Three Months Ended September 30, Derivative Gain (Loss) Location of Gain (Loss) Gain (Loss) Reclassified Derivative Instrument 2020 2019 2020 2019 Foreign exchange contracts $ (80) $ 156 Revenue $ (104) $ (98) Cost of sales (6) 54 Interest rate swap (1,303) — Interest expense — — $ (1,383) $ 156 $ (110) $ (44) Nine Months Ended September 30, Derivative Gain (Loss) Location of Gain (Loss) Gain (Loss) Reclassified Derivative Instrument 2020 2019 2020 2019 Foreign exchange contracts $ (361) $ 181 Revenue $ (107) $ (23) Cost of sales 36 99 Interest rate swap (2,908) — Interest expense — — $ (3,269) $ 181 $ (71) $ 76 We enter into foreign exchange contracts to minimize the impact of exchange rate fluctuations on short-term intercompany loans and related interest that are denominated in a foreign currency. The revaluation of intercompany loans and interest and the corresponding mark-to-market adjustment on derivatives are recorded in earnings. All outstanding contracts at September 30, 2020 mature within 12 months. The mark-to-market adjustments of non-designated derivative instruments were as follows: Three Months Ended September 30, Derivative Gain (Loss) Recognized in Earnings Derivatives Instrument Location of Derivative Gain (Loss) 2020 2019 Foreign exchange contracts Selling, general and administrative expense $ 891 $ (11,385) Nine Months Ended September 30, Derivative Gain (Loss) Recognized in Earnings Derivatives Instrument Location of Derivative Gain (Loss) 2020 2019 Foreign exchange contracts Selling, general and administrative expense $ (2,776) $ (6,181) Fair Value of Financial Instruments Financial instruments not reported at fair value on a recurring basis include cash and cash equivalents, accounts receivable, loan receivables, accounts payable and debt. The carrying value for cash and cash equivalents, accounts receivable, loans receivable and accounts payable approximate fair value. The fair value of debt is estimated based on recently executed transactions and market price quotations. The inputs used to determine the fair value of debt are classified as Level 2 in the fair value hierarchy. The carrying value and estimated fair value of debt was as follows: September 30, 2020 December 31, 2019 Carrying value $ 2,595,221 $ 2,739,722 Fair value $ 2,426,516 $ 2,572,794 |
Restructuring Charges and Asset
Restructuring Charges and Asset Impairments | 9 Months Ended |
Sep. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges and Asset Impairments | Restructuring Charges and Asset Impairments Restructuring Charges Activity in our restructuring reserves was as follows: Severance and benefits costs Other exit Total Balance at January 1, 2020 $ 11,937 $ 69 $ 12,006 Expenses, net 8,748 1,108 9,856 Cash payments (14,714) (1,155) (15,869) Balance at September 30, 2020 $ 5,971 $ 22 $ 5,993 Balance at January 1, 2019 $ 13,641 $ 1,808 $ 15,449 Expenses, net 12,498 845 13,343 Cash payments (16,362) (2,483) (18,845) Balance at September 30, 2019 $ 9,777 $ 170 $ 9,947 The majority of the restructuring reserves are expected to be paid over the next 12 to 24 months. Other Charges |
Debt
Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt Total debt consisted of the following: Interest rate September 30, 2020 December 31, 2019 Notes due October 2021 4.625% $ 170,253 $ 600,000 Notes due May 2022 5.375% 148,792 400,000 Notes due April 2023 5.70% 271,000 400,000 Notes due March 2024 4.625% 374,000 500,000 Notes due January 2037 5.25% 35,841 35,841 Notes due March 2043 6.70% 425,000 425,000 Term loan due November 2024 Variable 385,000 400,000 Term loan due January 2025 Variable 828,750 — Other debt 5,000 5,108 Principal amount 2,643,636 2,765,949 Less: unamortized costs, net 48,415 26,227 Total debt 2,595,221 2,739,722 Less: current portion long-term debt 63,509 20,108 Long-term debt $ 2,531,712 $ 2,719,614 Interest rates on certain notes are subject to adjustment based on changes in our credit ratings. As a result of credit rating downgrades in November 2019 and May 2020, the interest rates on the October 2021 notes and April 2023 notes increased 0.50% and the interest rate on the May 2022 notes increased 0.75% in the second quarter of 2020. Further, the interest rates on the October 2021 notes and April 2023 notes will increase an additional 0.25% in the fourth quarter of 2020. In February 2020, we secured a five In March 2020, we purchased under a tender offer $428 million of the October 2021 notes, $250 million of the May 2022 notes, $125 million of the April 2023 notes and $125 million of the March 2024 notes. A $37 million loss was incurred on the early redemption of debt. During the first nine months of 2020, we repaid $36 million of principal related to our term loans. We have a $500 million secured revolving credit facility that expires in November 2024 and contains financial and non-financial covenants. At September 30, 2020, we were in compliance with all covenants. In September 2020, we repaid the $100 million under the credit facility that we drew down in April 2020. At September 30, 2020 and December 31, 2019, there were no outstanding borrowings under this facility. |
Pensions and Other Benefit Prog
Pensions and Other Benefit Programs | 9 Months Ended |
Sep. 30, 2020 | |
Retirement Benefits [Abstract] | |
Pensions and Other Benefit Programs | Pensions and Other Benefit Programs The components of net periodic benefit (income) cost were as follows: Defined Benefit Pension Plans Nonpension Postretirement Benefit Plans United States Foreign Three Months Ended Three Months Ended Three Months Ended September 30, September 30, September 30, 2020 2019 2020 2019 2020 2019 Service cost $ 16 $ 20 $ 422 $ 385 $ 229 $ 242 Interest cost 12,719 15,792 3,548 4,435 1,255 1,646 Expected return on plan assets (20,932) (23,182) (8,297) (8,340) — — Amortization of transition credit — — (1) (2) — — Amortization of prior service (credit) cost (15) (15) 62 58 93 80 Amortization of net actuarial loss 7,972 6,537 2,092 1,543 926 507 Settlement 75 1,477 833 — — — Net periodic benefit (income) cost $ (165) $ 629 $ (1,341) $ (1,921) $ 2,503 $ 2,475 Contributions to benefit plans $ 2,061 $ 3,350 $ 445 $ 652 $ 2,422 $ 4,628 Defined Benefit Pension Plans Nonpension Postretirement Benefit Plans United States Foreign Nine Months Ended Nine Months Ended Nine Months Ended September 30, September 30, September 30, 2020 2019 2020 2019 2020 2019 Service cost $ 69 $ 62 $ 1,220 $ 1,157 $ 663 $ 725 Interest cost 39,077 47,378 10,473 13,231 3,742 4,937 Expected return on plan assets (63,539) (69,545) (24,474) (25,609) — — Amortization of transition credit — — (3) (5) — — Amortization of prior service (credit) cost (45) (45) 182 181 280 241 Amortization of net actuarial loss 24,367 19,610 6,156 4,727 2,400 1,521 Settlement 1,076 2,278 4,023 397 — — Net periodic benefit cost (income) $ 1,005 $ (262) $ (2,423) $ (5,921) $ 7,085 $ 7,424 Contributions to benefit plans $ 5,959 $ 7,401 $ 9,013 $ 9,740 $ 10,493 $ 13,841 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rate for the three and nine months ended September 30, 2020 was 4.9% and (3.8)%, respectively and includes a $3 million benefit, which is primarily due to regulations enacted into law during the quarter. The effective tax rate for the nine months ended September 30, 2020 also includes a $12 million charge for the surrender of company owned life insurance policies (see Note 8), a benefit of $2 million on the $198 million goodwill impairment charge as the majority of this charge is nondeductible, a benefit of $1 million from the resolution of certain tax examinations and a charge of $3 million for the write-off of deferred tax assets associated with the expiration of out-of-money vested stock options and the vesting of restricted stock. The effective tax rate for the three and nine months ended September 30, 2019 was 127.3% and (71.2)%, respectively, and includes a benefit of $23 million from the release of a foreign valuation allowance. The effective tax rate for the nine months ended September 30, 2019 also includes a $2 million tax on the $18 million book loss incurred from the disposition of operations in certain international markets, primarily due to nondeductible basis differences as well as a benefit of $6 million from the resolution of certain tax examinations. As is the case with other large corporations, our tax returns are examined by tax authorities in the U.S. and other global taxing jurisdictions in which we have operations. As a result, it is reasonably possible that the amount of unrecognized tax benefits will decrease in the next 12 months, and this decrease could be up to 10% of our unrecognized tax benefits. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies In the ordinary course of business, we are routinely defendants in, or party to, a number of pending and threatened legal actions. These may involve litigation by or against us relating to, among other things, contractual rights under vendor, insurance or other contracts; intellectual property or patent rights; equipment, service, payment or other disputes with clients; or disputes with employees. Some of these actions may be brought as a purported class action on behalf of a purported class of employees, customers or others. In management's opinion, the potential liability, if any, that may result from these actions, either individually or collectively, is not reasonably expected to have a material effect on our financial position, results of operations or cash flows as of September 30, 2020. However, as litigation is inherently unpredictable, there can be no assurances in this regard. In December 2018 and then in February 2019, certain of the Company’s officers and directors were named as defendants in two virtually identical derivative actions purportedly brought on behalf of the Company, Clem v. Lautenbach et al. and Devolin v. Lautenbach et al. These two actions, both filed by the same counsel in Connecticut state court, allege, among other things, breaches of fiduciary duty relating to these same disclosures, and seek compensatory damages and other relief derivatively for the benefit of the Company. Both of these are derivative claims related to a prior action filed in Connecticut state court, City of Livonia Retiree Health and Disability Benefits Plan v. Pitney Bowes Inc. et al. (“Livonia”). On October 24, 2019, the court had granted the defendants’ motions to dismiss the Livonia case, and that judgment is now final. Given that the defendants prevailed in the Livonia action, the plaintiffs in the Clem and Devolin actions moved to withdraw their complaints, and on February 20, 2020 the court granted the motions. Both cases have now been dismissed. We have entered into three equipment leases for our Commerce Services operations that will commence in the fourth quarter with terms ranging from seven |
Stockholders_ Equity
Stockholders’ Equity | 9 Months Ended |
Sep. 30, 2020 | |
Stockholders' Equity Note [Abstract] | |
Stockholders’ Equity | Stockholders’ Equity Changes in stockholders’ equity were as follows: Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive loss Treasury stock Total equity Balance at July 1, 2020 $ 323,338 $ 68,498 $ 5,188,119 $ (836,262) $ (4,699,113) $ 44,580 Net income — — 11,389 — — 11,389 Other comprehensive income — — — 22,690 — 22,690 Dividends paid ($0.05 per common share) — — (8,594) — — (8,594) Issuance of common stock — (9,272) — — 10,046 774 Stock-based compensation expense — 8,286 — — — 8,286 Balance at September 30, 2020 $ 323,338 $ 67,512 $ 5,190,914 $ (813,572) $ (4,689,067) $ 79,125 Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive loss Treasury stock Total equity Balance at July 1, 2019 $ 323,338 $ 105,341 $ 5,282,374 $ (907,678) $ (4,750,403) $ 52,972 Net loss — — (3,125) — — (3,125) Other comprehensive loss — — — (18,774) — (18,774) Dividends paid ($0.05 per common share) — — (8,508) — — (8,508) Issuance of common stock — (10,146) — — 11,291 1,145 Conversion to common stock — (246) — — 246 — Stock-based compensation expense — 6,702 — — — 6,702 Repurchase of common stock — — — — (5,000) (5,000) Balance at September 30, 2019 $ 323,338 $ 101,651 $ 5,270,741 $ (926,452) $ (4,743,866) $ 25,412 Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive loss Treasury stock Total equity Balance at January 1, 2020 $ 323,338 $ 98,748 $ 5,438,930 $ (840,143) $ (4,734,777) $ 286,096 Cumulative effect of accounting changes — — (21,900) — — (21,900) Net loss — — (200,423) — — (200,423) Other comprehensive income — — — 26,571 — 26,571 Dividends paid ($0.15 per common share) — — (25,693) — — (25,693) Issuance of common stock — (46,472) — — 45,710 (762) Stock-based compensation expense — 15,236 — — — 15,236 Balance at September 30, 2020 $ 323,338 $ 67,512 $ 5,190,914 $ (813,572) $ (4,689,067) $ 79,125 Preferred Preference Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive loss Treasury stock Total equity Balance at January 1, 2019 $ 1 $ 396 $ 323,338 $ 121,475 $ 5,279,682 $ (948,961) $ (4,674,089) $ 101,842 Net income — — — — 17,913 — — 17,913 Other comprehensive income — — — — — 22,509 — 22,509 Dividends paid ($0.15 per common share) — — — — (26,854) — — (26,854) Issuance of common stock — — — (32,877) — — 32,289 (588) Conversion to common stock — (130) — (2,804) — — 2,934 — Redemption of preferred/preference stock (1) (266) — (10) — — — (277) Stock-based compensation expense — — — 15,867 — — — 15,867 Repurchase of common stock — — — — — — (105,000) (105,000) Balance at September 30, 2019 $ — $ — $ 323,338 $ 101,651 $ 5,270,741 $ (926,452) $ (4,743,866) $ 25,412 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss (AOCL) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss (AOCL) | Accumulated Other Comprehensive Loss (AOCL) Reclassifications out of AOCL were as follows: Gain (Loss) Reclassified from AOCL Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Cash flow hedges Revenue $ (104) $ (98) $ (107) $ (23) Cost of sales (6) 54 36 99 Total before tax (110) (44) (71) 76 Income tax (benefit) provision (27) (11) (18) 19 Net of tax $ (83) $ (33) $ (53) $ 57 Available-for-sale securities Financing revenue $ 6,490 $ 146 $ 10,060 $ 42 Selling, general and administrative expense 263 — 210 — Total before tax 6,753 146 10,270 42 Income tax provision 1,681 37 2,557 11 Net of tax $ 5,072 $ 109 $ 7,713 $ 31 Pension and postretirement benefit plans Transition credit $ 1 $ 2 $ 3 $ 5 Prior service costs (140) (123) (417) (377) Actuarial losses (10,990) (8,587) (32,923) (25,858) Settlement (908) (1,477) (5,099) (2,675) Total before tax (12,037) (10,185) (38,436) (28,905) Income tax benefit (2,875) (2,633) (9,027) (7,406) Net of tax $ (9,162) $ (7,552) $ (29,409) $ (21,499) Changes in AOCL were as follows: Cash flow hedges Available for sale securities Pension and postretirement benefit plans Foreign currency adjustments Total Balance at January 1, 2020 $ 337 $ 2,849 $ (819,018) $ (24,311) $ (840,143) Other comprehensive (loss) income before reclassifications (1) (2,455) 2,237 — 5,040 4,822 Reclassifications into earnings (1) 53 (7,713) 29,409 — 21,749 Net other comprehensive (loss) income (2,402) (5,476) 29,409 5,040 26,571 Balance at September 30, 2020 $ (2,065) $ (2,627) $ (789,609) $ (19,271) $ (813,572) Cash flow hedges Available for sale securities Pension and postretirement benefit plans Foreign currency adjustments Total Balance at January 1, 2019 $ 191 $ (3,061) $ (846,461) $ (99,630) $ (948,961) Other comprehensive income (loss) before reclassifications (1) 135 7,547 — (6,584) 1,098 Reclassifications into earnings (1) (57) (31) 21,499 — 21,411 Net other comprehensive income (loss) 78 7,516 21,499 (6,584) 22,509 Balance at September 30, 2019 $ 269 $ 4,455 $ (824,962) $ (106,214) $ (926,452) |
Other (Income) Expense
Other (Income) Expense | 9 Months Ended |
Sep. 30, 2020 | |
Other Income and Expenses [Abstract] | |
Other (Income) Expense | Other (income) expense Other (income) expense consisted of the following: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Loss on extinguishment of debt $ — $ 667 $ 36,987 $ 667 Insurance proceeds (6,325) — (15,292) — Gain on sale of equity investment — — (11,908) — Loss on sale of business — — — 17,683 Other (income) expense $ (6,325) $ 667 $ 9,787 $ 18,350 |
Description of Business and B_2
Description of Business and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Accounting Pronouncements and Accounting Pronouncements Not Yet Adopted | Accounting Pronouncements Adopted in 2020 Effective January 1, 2020, we adopted Accounting Standards Update (ASU) 2016-13, Financial Instruments - Credit Losses . We adopted this standard using the modified retrospective transition approach with a cumulative effect adjustment to retained earnings. The ASU applies to financial assets measured at amortized cost, including finance receivables, trade and other receivables and investments in debt securities classified as available-for-sale and held-to-maturity. The ASU replaces the current incurred loss impairment model that recognizes losses when a probable threshold is met with a requirement to recognize lifetime expected credit losses immediately when a financial asset is originated or purchased. The models to estimate credit losses are required to be based on historical loss experience, current conditions, reasonable and supportable forecasts and current economic outlook. The adoption of the standard resulted in an increase in the opening reserve balance for accounts and other receivables of $15 million and the opening reserve balance for finance receivables of $10 million and a net reduction to retained earnings of $22 million. The impact of COVID-19 on global businesses and economies resulted in an increased probability of recessionary conditions, delinquency rates and business bankruptcy resulting in an additional $11 million provision in the first quarter of 2020. Through September 30, 2020, our credit loss provision was $35 million compared to $22 million through September 30, 2019. Accounting Pronouncements Not Yet Adopted In December 2019, the Financial Accounting Standards Board (FASB) issued ASU 2019-12, Simplifying the Accounting for Income Taxes . The ASU simplifies the accounting for income taxes by removing certain exceptions to the general principles and also clarifies and amends existing guidance. This standard is effective beginning January 1, 2021, with early adoption permitted. We do not expect this standard to have a material impact on our consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. |
Description of Business and B_3
Description of Business and Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Accounting Standards Update | Activity in the allowance for credit losses for accounts and other receivables for the nine months ended September 30, 2020 is presented below. See Note 7 for additional information pertaining to our finance receivables. Balance at December 31, 2019 Cumulative effect of accounting change Amounts charged to expense Write-offs, recoveries and currency impact Balance at Allowance for credit losses $ 17,830 $ 15,336 $ 16,856 $ (20,353) $ 29,669 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables disaggregate our revenue by source and timing of recognition: Three Months Ended September 30, 2020 Global Ecommerce Presort Services SendTech Solutions Revenue from products and services Revenue from leasing transactions and financing Total consolidated revenue Major products/service lines Business services $ 409,981 $ 127,705 $ 13,268 $ 550,954 $ — $ 550,954 Support services — — 117,519 117,519 — 117,519 Financing — — — — 86,218 86,218 Equipment sales — — 17,935 17,935 61,637 79,572 Supplies — — 39,635 39,635 — 39,635 Rentals — — — — 18,000 18,000 Subtotal 409,981 127,705 188,357 726,043 $ 165,855 $ 891,898 Revenue from leasing transactions and financing Financing — — 86,218 86,218 Equipment sales — — 61,637 61,637 Rentals — — 18,000 18,000 Total revenue $ 409,981 $ 127,705 $ 354,212 $ 891,898 Timing of revenue recognition from products and services Products/services transferred at a point in time $ — $ — $ 73,602 $ 73,602 Products/services transferred over time 409,981 127,705 114,755 652,441 Total $ 409,981 $ 127,705 $ 188,357 $ 726,043 Three Months Ended September 30, 2019 Global Ecommerce Presort Services SendTech Solutions Revenue from products and services Revenue from leasing transactions and financing Total consolidated revenue Major products/service lines Business services $ 278,995 $ 131,483 $ 8,623 $ 419,101 $ — $ 419,101 Support services — — 126,274 126,274 — 126,274 Financing — — — — 90,577 90,577 Equipment sales — — 19,062 19,062 70,556 89,618 Supplies — — 44,818 44,818 — 44,818 Rentals — — — — 19,737 19,737 Subtotal 278,995 131,483 198,777 609,255 $ 180,870 $ 790,125 Revenue from leasing transactions and financing Financing — — 90,577 90,577 Equipment sales — — 70,556 70,556 Rentals — — 19,737 19,737 Total revenue $ 278,995 $ 131,483 $ 379,647 $ 790,125 Timing of revenue recognition from products and services Products/services transferred at a point in time $ — $ — $ 81,547 $ 81,547 Products/services transferred over time 278,995 131,483 117,230 527,708 Total $ 278,995 $ 131,483 $ 198,777 $ 609,255 Nine Months Ended September 30, 2020 Global Ecommerce Presort Services SendTech Solutions Revenue from products and services Revenue from leasing transactions and financing Total consolidated revenue Major products/service lines Business services $ 1,100,757 $ 386,552 $ 37,014 $ 1,524,323 $ — $ 1,524,323 Support services — — 353,320 353,320 — 353,320 Financing — — — — 260,758 260,758 Equipment sales — — 49,556 49,556 164,126 213,682 Supplies — — 118,117 118,117 — 118,117 Rentals — — — — 55,458 55,458 Subtotal 1,100,757 386,552 558,007 2,045,316 $ 480,342 $ 2,525,658 Revenue from leasing transactions and financing Financing — — 260,758 260,758 Equipment sales — — 164,126 164,126 Rentals — — 55,458 55,458 Total revenue $ 1,100,757 $ 386,552 $ 1,038,349 $ 2,525,658 Timing of revenue recognition from products and services Products/services transferred at a point in time $ — $ — $ 210,726 $ 210,726 Products/services transferred over time 1,100,757 386,552 347,281 1,834,590 Total $ 1,100,757 $ 386,552 $ 558,007 $ 2,045,316 Nine Months Ended September 30, 2019 Global Ecommerce Presort Services SendTech Solutions Revenue from products and services Revenue from leasing transactions and financing Total consolidated revenue Major products/service lines Business services $ 827,568 $ 394,468 $ 21,573 $ 1,243,609 $ — $ 1,243,609 Support services — — 382,578 382,578 — 382,578 Financing — — — — 280,039 280,039 Equipment sales — — 59,739 59,739 205,217 264,956 Supplies — — 142,261 142,261 — 142,261 Rentals — — — — 60,339 60,339 Subtotal 827,568 394,468 606,151 1,828,187 $ 545,595 $ 2,373,782 Revenue from leasing transactions and financing Financing — — 280,039 280,039 Equipment sales — — 205,217 205,217 Rentals — — 60,339 60,339 Total revenue $ 827,568 $ 394,468 $ 1,151,746 $ 2,373,782 Timing of revenue recognition from products and services Products/services transferred at a point in time $ — $ — $ 251,214 $ 251,214 Products/services transferred over time 827,568 394,468 354,937 1,576,973 Total $ 827,568 $ 394,468 $ 606,151 $ 1,828,187 |
Contract Assets and Advance Billings | Advance Billings from Contracts with Customers Balance sheet location September 30, 2020 December 31, 2019 Increase/ (decrease) Advance billings, current Advance billings $ 94,454 $ 92,464 $ 1,990 Advance billings, noncurrent Other noncurrent liabilities $ 1,117 $ 1,245 $ (128) |
Future Performance Obligations | The transaction prices allocated to future performance obligations will be recognized as follows: Remainder of 2020 2021 2022-2025 Total SendTech Solutions $ 73,963 $ 263,673 $ 388,235 $ 725,871 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated Statements | The following tables provide information about our reportable segments and reconciliation of segment EBIT to net income (loss). Revenue Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Global Ecommerce $ 409,981 $ 278,995 $ 1,100,757 $ 827,568 Presort Services 127,705 131,483 386,552 394,468 Commerce Services 537,686 410,478 1,487,309 1,222,036 SendTech Solutions 354,212 379,647 1,038,349 1,151,746 Total revenue $ 891,898 $ 790,125 $ 2,525,658 $ 2,373,782 |
Reconciliation of EBIT from Segments to Consolidated | EBIT Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Global Ecommerce $ (19,757) $ (21,793) $ (68,126) $ (51,969) Presort Services 14,481 17,687 42,758 48,215 Commerce Services (5,276) (4,106) (25,368) (3,754) SendTech Solutions 112,599 130,954 323,429 378,095 Total segment EBIT 107,323 126,848 298,061 374,341 Reconciliation of Segment EBIT to net income (loss): Unallocated corporate expenses (53,429) (58,277) (146,640) (160,283) Restructuring charges and asset impairments (3,766) (47,017) (12,505) (56,616) Interest expense, net (38,801) (39,730) (115,558) (117,758) Gain on sale of equity investment — — 11,908 — Goodwill impairment — — (198,169) — Loss on extinguishment of debt — (667) (36,987) (667) Loss on dispositions — — — (17,683) Transaction costs — (707) (641) (2,573) (Provision) benefit for income taxes (554) 24,895 (7,540) 13,351 Income (loss) from continuing operations 10,773 5,345 (208,071) 32,112 Income (loss) from discontinued operations, net of tax 616 (8,470) 7,648 (14,199) Net income (loss) $ 11,389 $ (3,125) $ (200,423) $ 17,913 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Financial information and Assets and Liabilities | Selected financial information of discontinued operations is as follows: Three Months Ended September 30, 2020 Three Months Ended September 30, 2019 Software Solutions Production Mail Total Software Solutions Production Mail Total Revenue $ — $ — $ — $ 73,620 $ — $ 73,620 Earnings from discontinued operations $ — $ — $ — $ 8,633 $ — $ 8,633 Gain (loss) on sale 474 — 474 (12,447) (5,710) (18,157) Income (loss) from discontinued operations before taxes $ 474 $ — 474 $ (3,814) $ (5,710) (9,524) Tax benefit (142) (1,054) Income (loss) from discontinued operations, net of tax $ 616 $ (8,470) Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 Software Solutions Production Mail Total Software Solutions Production Mail Total Revenue $ — $ — $ — $ 219,144 $ — $ 219,144 Earnings (loss) from discontinued operations $ — $ — $ — $ 13,334 $ (663) $ 12,671 Gain (loss) on sale 7,343 (167) 7,176 (14,211) (14,967) (29,178) Income (loss) from discontinued operations before taxes $ 7,343 $ (167) 7,176 $ (877) $ (15,630) (16,507) Tax benefit (472) (2,308) Income (loss) from discontinued operations, net of tax $ 7,648 $ (14,199) Assets of discontinued operations and liabilities of discontinued operations at December 31, 2019 includes the assets and liabilities of the software business in Australia. |
Earnings per Share (EPS) (Table
Earnings per Share (EPS) (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Numerator: Income (loss) from continuing operations $ 10,773 $ 5,345 $ (208,071) $ 32,112 Income (loss) from discontinued operations, net of tax 616 (8,470) 7,648 (14,199) Net income (loss) (numerator for diluted EPS) 11,389 (3,125) (200,423) 17,913 Less: Preference stock dividend — — — 8 Income (loss) attributable to common stockholders (numerator for basic EPS) $ 11,389 $ (3,125) $ (200,423) $ 17,905 Denominator: Weighted-average shares used in basic EPS 171,828 170,326 171,388 178,048 Dilutive effect of common stock equivalents (1) 2,876 875 — 1,048 Weighted-average shares used in diluted EPS 174,704 171,201 171,388 179,096 Basic earnings (loss) per share (2) : Continuing operations $ 0.06 $ 0.03 $ (1.21) $ 0.18 Discontinued operations — (0.05) 0.04 (0.08) Net income (loss) $ 0.07 $ (0.02) $ (1.17) $ 0.10 Diluted earnings (loss) per share (2) : Continuing operations $ 0.06 $ 0.03 $ (1.21) $ 0.18 Discontinued operations — (0.05) 0.04 (0.08) Net income (loss) $ 0.07 $ (0.02) $ (1.17) $ 0.10 Common stock equivalents excluded from calculation of diluted earnings per share because their impact would be anti-dilutive: 14,828 16,182 15,855 16,166 (1) Dilutive effect of common stock equivalents for the nine months ended September 30, 2020 was 1,604 shares; however, this amount was not included in the calculation of diluted earnings per share as the impact would have been anti-dilutive. (2) The sum of the earnings per share amounts may not equal the totals due to rounding. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventory Components | Inventories consisted of the following: September 30, December 31, Raw materials $ 16,174 $ 13,514 Supplies and service parts 22,628 21,840 Finished products 31,957 36,969 Inventory at FIFO cost 70,759 72,323 Excess of FIFO cost over LIFO cost (3,785) (4,072) Total inventory, net $ 66,974 $ 68,251 |
Finance Assets and Lessor Ope_2
Finance Assets and Lessor Operating Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Financing Receivables | Finance receivables consisted of the following: September 30, 2020 December 31, 2019 North America International Total North America International Total Sales-type lease receivables Gross finance receivables $ 981,475 $ 201,590 $ 1,183,065 $ 1,055,852 $ 224,202 $ 1,280,054 Unguaranteed residual values 37,191 11,609 48,800 41,934 11,789 53,723 Unearned income (270,499) (58,811) (329,310) (319,281) (65,888) (385,169) Allowance for credit losses (25,886) (4,902) (30,788) (10,920) (2,085) (13,005) Net investment in sales-type lease receivables 722,281 149,486 871,767 767,585 168,018 935,603 Loan receivables Loan receivables 259,832 22,377 282,209 298,247 27,926 326,173 Allowance for credit losses (6,792) (488) (7,280) (5,906) (740) (6,646) Net investment in loan receivables 253,040 21,889 274,929 292,341 27,186 319,527 Net investment in finance receivables $ 975,321 $ 171,375 $ 1,146,696 $ 1,059,926 $ 195,204 $ 1,255,130 |
Sales-type Lease Maturity | Maturities of gross sales-type lease receivables and gross loan receivables at September 30, 2020 were as follows: Sales-type Lease Receivables Loan Receivables North America International Total North America International Total Remaining for year ending December 31, 2020 $ 114,724 $ 35,721 $ 150,445 $ 215,593 $ 22,377 $ 237,970 Year ending December 31, 2021 359,198 75,057 434,255 13,314 — 13,314 Year ending December 31, 2022 259,729 49,422 309,151 11,507 — 11,507 Year ending December 31, 2023 155,254 27,279 182,533 6,394 — 6,394 Year ending December 31, 2024 77,034 11,000 88,034 7,023 — 7,023 Thereafter 15,536 3,111 18,647 6,001 — 6,001 Total $ 981,475 $ 201,590 $ 1,183,065 $ 259,832 $ 22,377 $ 282,209 |
Loan Receivable Maturity | Maturities of gross sales-type lease receivables and gross loan receivables at September 30, 2020 were as follows: Sales-type Lease Receivables Loan Receivables North America International Total North America International Total Remaining for year ending December 31, 2020 $ 114,724 $ 35,721 $ 150,445 $ 215,593 $ 22,377 $ 237,970 Year ending December 31, 2021 359,198 75,057 434,255 13,314 — 13,314 Year ending December 31, 2022 259,729 49,422 309,151 11,507 — 11,507 Year ending December 31, 2023 155,254 27,279 182,533 6,394 — 6,394 Year ending December 31, 2024 77,034 11,000 88,034 7,023 — 7,023 Thereafter 15,536 3,111 18,647 6,001 — 6,001 Total $ 981,475 $ 201,590 $ 1,183,065 $ 259,832 $ 22,377 $ 282,209 |
Past Due Financing Receivables | The aging of gross finance receivables was as follows: September 30, 2020 Sales-type Lease Receivables Loan Receivables North International North International Total Past due amounts 0 - 90 days $ 961,346 $ 199,565 $ 254,802 $ 22,096 $ 1,437,809 Past due amounts > 90 days 20,129 2,025 5,030 281 27,465 Total $ 981,475 $ 201,590 $ 259,832 $ 22,377 $ 1,465,274 Past due amounts > 90 days Still accruing interest $ 3,365 $ 699 $ 1,461 $ 58 $ 5,583 Not accruing interest 16,764 1,326 3,569 223 21,882 Total $ 20,129 $ 2,025 $ 5,030 $ 281 $ 27,465 December 31, 2019 Sales-type Lease Receivables Loan Receivables North International North International Total Past due amounts 0 - 90 days $ 1,032,912 $ 220,819 $ 294,001 $ 27,697 $ 1,575,429 Past due amounts > 90 days 22,940 3,383 4,246 229 30,798 Total $ 1,055,852 $ 224,202 $ 298,247 $ 27,926 $ 1,606,227 Past due amounts > 90 days Still accruing interest $ 4,835 $ 1,081 $ 2,094 $ 121 $ 8,131 Not accruing interest 18,105 2,302 2,152 108 22,667 Total $ 22,940 $ 3,383 $ 4,246 $ 229 $ 30,798 |
Allowance for Credit Losses on Financing Receivables | Activity in the allowance for credit losses for finance receivables was as follows: Sales-type Lease Receivables Loan Receivables North International North International Total Balance at December 31, 2019 $ 10,920 $ 2,085 $ 5,906 $ 740 $ 19,651 Cumulative effect of accounting change 9,271 1,750 (1,116) (402) 9,503 Amounts charged to expense 10,009 1,314 6,792 429 18,544 Write-offs (5,950) (548) (7,370) (343) (14,211) Recoveries 1,488 91 2,399 1 3,979 Currency impact 148 210 181 63 602 Balance at September 30, 2020 $ 25,886 $ 4,902 $ 6,792 $ 488 $ 38,068 Sales-type Lease Receivables Loan Receivables North International North International Total Balance at January 1, 2019 $ 10,253 $ 2,355 $ 6,777 $ 837 $ 20,222 Amounts charged to expense 4,587 801 3,547 440 9,375 Write-offs (5,153) (842) (6,882) (608) (13,485) Recoveries 1,286 157 2,746 9 4,198 Currency impact 199 (254) (172) 41 (186) Balance at September 30, 2019 $ 11,172 $ 2,217 $ 6,016 $ 719 $ 20,124 |
Financing Receivable Credit Quality Indicators | The table below shows the gross sales-type lease receivable and loan receivable balances by relative risk class and year of origination based on the relative scores of the accounts within each class. Sales Type Lease Receivables Loan Receivables Total 2020 2019 2018 2017 2016 Prior Low $ 187,763 $ 230,942 $ 178,224 $ 101,307 $ 37,346 $ 15,488 $ 185,709 $ 936,779 Medium 39,810 58,779 42,501 24,903 10,491 3,924 59,422 239,830 High 5,752 6,219 4,722 2,605 1,344 184 4,617 25,443 Not Scored 55,694 79,125 53,395 28,611 12,207 1,729 32,461 263,222 Total $ 289,019 $ 375,065 $ 278,842 $ 157,426 $ 61,388 $ 21,325 $ 282,209 $ 1,465,274 |
Sales-type Lease, Lease Income | Lease income from sales-type leases was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Profit recognized at commencement (1) $ 29,169 $ 39,326 $ 80,349 $ 112,422 Interest income 33,654 56,522 101,969 174,045 Total lease income from sales-type leases $ 62,823 $ 95,848 $ 182,318 $ 286,467 (1) Lease contracts do not include variable lease payments. |
Lessor, Payments to be Received | We also lease mailing equipment under operating leases with terms of one Remaining for year ending December 31, 2020 $ 17,351 Year ending December 31, 2021 36,396 Year ending December 31, 2022 13,688 Year ending December 31, 2023 7,172 Year ending December 31, 2024 2,100 Thereafter 399 Total $ 77,106 |
Intangible Assets, Goodwill a_2
Intangible Assets, Goodwill and Other Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible assets consisted of the following: September 30, 2020 December 31, 2019 Gross Accumulated Net Gross Accumulated Net Customer relationships $ 268,195 $ (108,338) $ 159,857 $ 265,665 $ (88,550) $ 177,115 Software & technology 31,600 (23,969) 7,631 31,600 (19,999) 11,601 Trademarks & other 13,324 (13,319) 5 13,324 (11,400) 1,924 Total intangible assets $ 313,119 $ (145,626) $ 167,493 $ 310,589 $ (119,949) $ 190,640 |
Amortization Expense In Future Periods | Future amortization expense as of September 30, 2020 is shown in the table below. Actual amortization expense may differ due to, among other things, fluctuations in foreign currency exchange rates, impairments, acquisitions and accelerated amortization. Remaining for year ending December 31, 2020 $ 7,683 Year ending December 31, 2021 30,265 Year ending December 31, 2022 29,315 Year ending December 31, 2023 26,465 Year ending December 31, 2024 26,465 Thereafter 47,300 Total $ 167,493 |
Schedule of Goodwill | Changes in the carrying value of goodwill, by reporting segment, are shown in the table below. December 31, 2019 Impairment Acquisition Currency impact September 30, Global Ecommerce $ 609,431 $ (198,169) $ — $ — $ 411,262 Presort Services 212,529 — 8,463 — 220,992 Commerce Services 821,960 (198,169) 8,463 — 632,254 SendTech Solutions 502,219 — — 7,671 509,890 Total goodwill $ 1,324,179 $ (198,169) $ 8,463 $ 7,671 $ 1,142,144 |
Fair Value Measurements and D_2
Fair Value Measurements and Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables show, by level within the fair value hierarchy, our financial assets and liabilities that are accounted for at fair value on a recurring basis. September 30, 2020 Level 1 Level 2 Level 3 Total Assets: Investment securities Money market funds $ 116,806 $ 440,493 $ — $ 557,299 Equity securities — 22,555 — 22,555 Commingled fixed income securities 1,720 19,537 — 21,257 Government and related securities 17,408 18,601 — 36,009 Corporate debt securities — 82,959 — 82,959 Mortgage-backed / asset-backed securities — 275,352 — 275,352 Derivatives Foreign exchange contracts — 2,603 — 2,603 Total assets $ 135,934 $ 862,100 $ — $ 998,034 Liabilities: Derivatives Interest rate swaps $ — $ (2,908) $ — $ (2,908) Foreign exchange contracts — (1,086) — (1,086) Total liabilities $ — $ (3,994) $ — $ (3,994) December 31, 2019 Level 1 Level 2 Level 3 Total Assets: Investment securities Money market funds $ 161,441 $ 240,364 $ — $ 401,805 Equity securities — 21,979 — 21,979 Commingled fixed income securities 1,656 18,404 — 20,060 Government and related securities 64,572 17,478 — 82,050 Corporate debt securities — 72,149 — 72,149 Mortgage-backed / asset-backed securities — 66,339 — 66,339 Derivatives Foreign exchange contracts — 3,256 — 3,256 Total assets $ 227,669 $ 439,969 $ — $ 667,638 Liabilities: Derivatives Foreign exchange contracts $ — $ (1,402) $ — $ (1,402) Total liabilities $ — $ (1,402) $ — $ (1,402) |
Schedule of Available-for-sale Securities Reconciliation | Available-for-sale securities consisted of the following: September 30, 2020 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Government and related securities $ 35,018 $ 144 $ (719) $ 34,443 Corporate debt securities 84,457 422 (1,920) 82,959 Commingled fixed income securities 1,699 21 — 1,720 Mortgage-backed / asset-backed securities 276,880 476 (2,004) 275,352 Total $ 398,054 $ 1,063 $ (4,643) $ 394,474 December 31, 2019 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Government and related securities $ 80,732 $ 1,358 $ (114) $ 81,976 Corporate debt securities 70,426 2,009 (286) 72,149 Commingled fixed income securities 1,675 — (19) 1,656 Mortgage-backed / asset-backed securities 65,679 960 (300) 66,339 Total $ 218,512 $ 4,327 $ (719) $ 222,120 |
Schedule of Unrealized Holding Losses | Investment securities in a loss position were as follows: September 30, 2020 December 31, 2019 Fair Value Gross unrealized losses Fair Value Gross unrealized losses Less than 12 continuous months $ 314,145 $ 4,543 $ 52,521 $ 583 Greater than 12 continuous months 3,157 100 9,227 136 Total $ 317,302 $ 4,643 $ 61,748 $ 719 |
Available-for-sale Securities | Scheduled maturities of available-for-sale securities at September 30, 2020 were as follows: Amortized cost Estimated fair value Within 1 year $ 19,299 $ 19,379 After 1 year through 5 years 9,354 9,553 After 5 years through 10 years 54,448 53,476 After 10 years 314,953 312,066 Total $ 398,054 $ 394,474 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The fair value of derivative instruments was as follows: Designation of Derivatives Balance Sheet Location September 30, December 31, Derivatives designated as Foreign exchange contracts Other current assets and prepayments $ 15 $ 207 Accounts payable and accrued liabilities (154) (56) Interest rate swaps Other noncurrent liabilities (2,908) — Derivatives not designated as Foreign exchange contracts Other current assets and prepayments 2,588 3,049 Accounts payable and accrued liabilities (932) (1,346) Total derivative assets $ 2,603 $ 3,256 Total derivative liabilities (3,994) (1,402) Total net derivative (liability) asset $ (1,391) $ 1,854 |
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location | Results of cash flow hedging relationships were as follows: Three Months Ended September 30, Derivative Gain (Loss) Location of Gain (Loss) Gain (Loss) Reclassified Derivative Instrument 2020 2019 2020 2019 Foreign exchange contracts $ (80) $ 156 Revenue $ (104) $ (98) Cost of sales (6) 54 Interest rate swap (1,303) — Interest expense — — $ (1,383) $ 156 $ (110) $ (44) Nine Months Ended September 30, Derivative Gain (Loss) Location of Gain (Loss) Gain (Loss) Reclassified Derivative Instrument 2020 2019 2020 2019 Foreign exchange contracts $ (361) $ 181 Revenue $ (107) $ (23) Cost of sales 36 99 Interest rate swap (2,908) — Interest expense — — $ (3,269) $ 181 $ (71) $ 76 |
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location | All outstanding contracts at September 30, 2020 mature within 12 months. The mark-to-market adjustments of non-designated derivative instruments were as follows: Three Months Ended September 30, Derivative Gain (Loss) Recognized in Earnings Derivatives Instrument Location of Derivative Gain (Loss) 2020 2019 Foreign exchange contracts Selling, general and administrative expense $ 891 $ (11,385) Nine Months Ended September 30, Derivative Gain (Loss) Recognized in Earnings Derivatives Instrument Location of Derivative Gain (Loss) 2020 2019 Foreign exchange contracts Selling, general and administrative expense $ (2,776) $ (6,181) |
Fair Value, by Balance Sheet Grouping | The carrying value and estimated fair value of debt was as follows: September 30, 2020 December 31, 2019 Carrying value $ 2,595,221 $ 2,739,722 Fair value $ 2,426,516 $ 2,572,794 |
Restructuring Charges and Ass_2
Restructuring Charges and Asset Impairments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | Activity in our restructuring reserves was as follows: Severance and benefits costs Other exit Total Balance at January 1, 2020 $ 11,937 $ 69 $ 12,006 Expenses, net 8,748 1,108 9,856 Cash payments (14,714) (1,155) (15,869) Balance at September 30, 2020 $ 5,971 $ 22 $ 5,993 Balance at January 1, 2019 $ 13,641 $ 1,808 $ 15,449 Expenses, net 12,498 845 13,343 Cash payments (16,362) (2,483) (18,845) Balance at September 30, 2019 $ 9,777 $ 170 $ 9,947 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Total debt consisted of the following: Interest rate September 30, 2020 December 31, 2019 Notes due October 2021 4.625% $ 170,253 $ 600,000 Notes due May 2022 5.375% 148,792 400,000 Notes due April 2023 5.70% 271,000 400,000 Notes due March 2024 4.625% 374,000 500,000 Notes due January 2037 5.25% 35,841 35,841 Notes due March 2043 6.70% 425,000 425,000 Term loan due November 2024 Variable 385,000 400,000 Term loan due January 2025 Variable 828,750 — Other debt 5,000 5,108 Principal amount 2,643,636 2,765,949 Less: unamortized costs, net 48,415 26,227 Total debt 2,595,221 2,739,722 Less: current portion long-term debt 63,509 20,108 Long-term debt $ 2,531,712 $ 2,719,614 |
Pensions and Other Benefit Pr_2
Pensions and Other Benefit Programs (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of Defined Benefit Plans Disclosures | The components of net periodic benefit (income) cost were as follows: Defined Benefit Pension Plans Nonpension Postretirement Benefit Plans United States Foreign Three Months Ended Three Months Ended Three Months Ended September 30, September 30, September 30, 2020 2019 2020 2019 2020 2019 Service cost $ 16 $ 20 $ 422 $ 385 $ 229 $ 242 Interest cost 12,719 15,792 3,548 4,435 1,255 1,646 Expected return on plan assets (20,932) (23,182) (8,297) (8,340) — — Amortization of transition credit — — (1) (2) — — Amortization of prior service (credit) cost (15) (15) 62 58 93 80 Amortization of net actuarial loss 7,972 6,537 2,092 1,543 926 507 Settlement 75 1,477 833 — — — Net periodic benefit (income) cost $ (165) $ 629 $ (1,341) $ (1,921) $ 2,503 $ 2,475 Contributions to benefit plans $ 2,061 $ 3,350 $ 445 $ 652 $ 2,422 $ 4,628 Defined Benefit Pension Plans Nonpension Postretirement Benefit Plans United States Foreign Nine Months Ended Nine Months Ended Nine Months Ended September 30, September 30, September 30, 2020 2019 2020 2019 2020 2019 Service cost $ 69 $ 62 $ 1,220 $ 1,157 $ 663 $ 725 Interest cost 39,077 47,378 10,473 13,231 3,742 4,937 Expected return on plan assets (63,539) (69,545) (24,474) (25,609) — — Amortization of transition credit — — (3) (5) — — Amortization of prior service (credit) cost (45) (45) 182 181 280 241 Amortization of net actuarial loss 24,367 19,610 6,156 4,727 2,400 1,521 Settlement 1,076 2,278 4,023 397 — — Net periodic benefit cost (income) $ 1,005 $ (262) $ (2,423) $ (5,921) $ 7,085 $ 7,424 Contributions to benefit plans $ 5,959 $ 7,401 $ 9,013 $ 9,740 $ 10,493 $ 13,841 |
Stockholders_ Equity (Tables)
Stockholders’ Equity (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stockholders Equity | Changes in stockholders’ equity were as follows: Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive loss Treasury stock Total equity Balance at July 1, 2020 $ 323,338 $ 68,498 $ 5,188,119 $ (836,262) $ (4,699,113) $ 44,580 Net income — — 11,389 — — 11,389 Other comprehensive income — — — 22,690 — 22,690 Dividends paid ($0.05 per common share) — — (8,594) — — (8,594) Issuance of common stock — (9,272) — — 10,046 774 Stock-based compensation expense — 8,286 — — — 8,286 Balance at September 30, 2020 $ 323,338 $ 67,512 $ 5,190,914 $ (813,572) $ (4,689,067) $ 79,125 Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive loss Treasury stock Total equity Balance at July 1, 2019 $ 323,338 $ 105,341 $ 5,282,374 $ (907,678) $ (4,750,403) $ 52,972 Net loss — — (3,125) — — (3,125) Other comprehensive loss — — — (18,774) — (18,774) Dividends paid ($0.05 per common share) — — (8,508) — — (8,508) Issuance of common stock — (10,146) — — 11,291 1,145 Conversion to common stock — (246) — — 246 — Stock-based compensation expense — 6,702 — — — 6,702 Repurchase of common stock — — — — (5,000) (5,000) Balance at September 30, 2019 $ 323,338 $ 101,651 $ 5,270,741 $ (926,452) $ (4,743,866) $ 25,412 Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive loss Treasury stock Total equity Balance at January 1, 2020 $ 323,338 $ 98,748 $ 5,438,930 $ (840,143) $ (4,734,777) $ 286,096 Cumulative effect of accounting changes — — (21,900) — — (21,900) Net loss — — (200,423) — — (200,423) Other comprehensive income — — — 26,571 — 26,571 Dividends paid ($0.15 per common share) — — (25,693) — — (25,693) Issuance of common stock — (46,472) — — 45,710 (762) Stock-based compensation expense — 15,236 — — — 15,236 Balance at September 30, 2020 $ 323,338 $ 67,512 $ 5,190,914 $ (813,572) $ (4,689,067) $ 79,125 Preferred Preference Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive loss Treasury stock Total equity Balance at January 1, 2019 $ 1 $ 396 $ 323,338 $ 121,475 $ 5,279,682 $ (948,961) $ (4,674,089) $ 101,842 Net income — — — — 17,913 — — 17,913 Other comprehensive income — — — — — 22,509 — 22,509 Dividends paid ($0.15 per common share) — — — — (26,854) — — (26,854) Issuance of common stock — — — (32,877) — — 32,289 (588) Conversion to common stock — (130) — (2,804) — — 2,934 — Redemption of preferred/preference stock (1) (266) — (10) — — — (277) Stock-based compensation expense — — — 15,867 — — — 15,867 Repurchase of common stock — — — — — — (105,000) (105,000) Balance at September 30, 2019 $ — $ — $ 323,338 $ 101,651 $ 5,270,741 $ (926,452) $ (4,743,866) $ 25,412 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (AOCL) (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Reclassification out of Accumulated Other Comprehensive Income | Reclassifications out of AOCL were as follows: Gain (Loss) Reclassified from AOCL Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Cash flow hedges Revenue $ (104) $ (98) $ (107) $ (23) Cost of sales (6) 54 36 99 Total before tax (110) (44) (71) 76 Income tax (benefit) provision (27) (11) (18) 19 Net of tax $ (83) $ (33) $ (53) $ 57 Available-for-sale securities Financing revenue $ 6,490 $ 146 $ 10,060 $ 42 Selling, general and administrative expense 263 — 210 — Total before tax 6,753 146 10,270 42 Income tax provision 1,681 37 2,557 11 Net of tax $ 5,072 $ 109 $ 7,713 $ 31 Pension and postretirement benefit plans Transition credit $ 1 $ 2 $ 3 $ 5 Prior service costs (140) (123) (417) (377) Actuarial losses (10,990) (8,587) (32,923) (25,858) Settlement (908) (1,477) (5,099) (2,675) Total before tax (12,037) (10,185) (38,436) (28,905) Income tax benefit (2,875) (2,633) (9,027) (7,406) Net of tax $ (9,162) $ (7,552) $ (29,409) $ (21,499) |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in AOCL were as follows: Cash flow hedges Available for sale securities Pension and postretirement benefit plans Foreign currency adjustments Total Balance at January 1, 2020 $ 337 $ 2,849 $ (819,018) $ (24,311) $ (840,143) Other comprehensive (loss) income before reclassifications (1) (2,455) 2,237 — 5,040 4,822 Reclassifications into earnings (1) 53 (7,713) 29,409 — 21,749 Net other comprehensive (loss) income (2,402) (5,476) 29,409 5,040 26,571 Balance at September 30, 2020 $ (2,065) $ (2,627) $ (789,609) $ (19,271) $ (813,572) Cash flow hedges Available for sale securities Pension and postretirement benefit plans Foreign currency adjustments Total Balance at January 1, 2019 $ 191 $ (3,061) $ (846,461) $ (99,630) $ (948,961) Other comprehensive income (loss) before reclassifications (1) 135 7,547 — (6,584) 1,098 Reclassifications into earnings (1) (57) (31) 21,499 — 21,411 Net other comprehensive income (loss) 78 7,516 21,499 (6,584) 22,509 Balance at September 30, 2019 $ 269 $ 4,455 $ (824,962) $ (106,214) $ (926,452) |
Other (Income) Expense (Tables)
Other (Income) Expense (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Other Income and Expenses [Abstract] | |
Schedule of Other (Income) Expense | Other (income) expense consisted of the following: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Loss on extinguishment of debt $ — $ 667 $ 36,987 $ 667 Insurance proceeds (6,325) — (15,292) — Gain on sale of equity investment — — (11,908) — Loss on sale of business — — — 17,683 Other (income) expense $ (6,325) $ 667 $ 9,787 $ 18,350 |
Description of Business and B_4
Description of Business and Basis of Presentation (Details) $ in Millions | 1 Months Ended | ||
Jan. 31, 2020USD ($)market | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Other receivables | $ 60 | $ 91 | |
Disposed of by Sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Other receivables | $ 20 | ||
Number of smaller markets sold | market | 6 |
Description of Business and B_5
Description of Business and Basis of Presentation (Accounting Pronouncements) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Jan. 01, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Accounts and other receivables | $ 348,565 | $ 373,471 | ||||
Allowance for credit losses | 38,068 | $ 20,124 | 19,651 | $ 20,222 | ||
Retained earnings | (5,190,914) | (5,438,930) | ||||
Provision for credit losses | $ 11,000 | 35,000 | 22,000 | |||
Allowance for credit losses | ||||||
Balance at December 31, 2019 | 17,830 | 17,830 | ||||
Amounts charged to expense | 35,400 | $ 22,131 | ||||
Balance at September 30, 2020 | 29,669 | |||||
Cumulative Effect | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for credit losses | $ 9,503 | |||||
ASU 2016-13 | ||||||
Allowance for credit losses | ||||||
Balance at December 31, 2019 | 17,830 | 17,830 | ||||
Amounts charged to expense | 16,856 | |||||
Write-offs, recoveries and currency impact | (20,353) | |||||
Balance at September 30, 2020 | 29,669 | |||||
ASU 2016-13 | Adjusted Balance | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Accounts and other receivables | $ 15,000 | |||||
Allowance for credit losses | 10,000 | |||||
Retained earnings | $ 22,000 | |||||
ASU 2016-13 | Cumulative Effect | ||||||
Allowance for credit losses | ||||||
Balance at December 31, 2019 | $ 15,336 | $ 15,336 |
Revenue (Disaggregates of Reven
Revenue (Disaggregates of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from leasing transactions and financing | $ 891,898 | $ 790,125 | $ 2,525,658 | $ 2,373,782 |
Total consolidated revenue | 891,898 | 790,125 | 2,525,658 | 2,373,782 |
ASC 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 726,043 | 609,255 | 2,045,316 | 1,828,187 |
Products/services transferred at a point in time | ASC 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 73,602 | 81,547 | 210,726 | 251,214 |
Products/services transferred over time | ASC 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 652,441 | 527,708 | 1,834,590 | 1,576,973 |
Sales And Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 726,043 | 609,255 | 2,045,316 | 1,828,187 |
Revenue from leasing transactions and financing | 165,855 | 180,870 | 480,342 | 545,595 |
Total consolidated revenue | 891,898 | 790,125 | 2,525,658 | 2,373,782 |
Business services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 550,954 | 419,101 | 1,524,323 | 1,243,609 |
Revenue from leasing transactions and financing | 0 | 0 | 0 | 0 |
Total consolidated revenue | 550,954 | 419,101 | 1,524,323 | 1,243,609 |
Support services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 117,519 | 126,274 | 353,320 | 382,578 |
Revenue from leasing transactions and financing | 0 | 0 | 0 | 0 |
Total consolidated revenue | 117,519 | 126,274 | 353,320 | 382,578 |
Financing | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 0 | 0 | 0 | 0 |
Revenue from leasing transactions and financing | 86,218 | 90,577 | 260,758 | 280,039 |
Total consolidated revenue | 86,218 | 90,577 | 260,758 | 280,039 |
Equipment sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 17,935 | 19,062 | 49,556 | 59,739 |
Revenue from leasing transactions and financing | 61,637 | 70,556 | 164,126 | 205,217 |
Total consolidated revenue | 79,572 | 89,618 | 213,682 | 264,956 |
Supplies | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 39,635 | 44,818 | 118,117 | 142,261 |
Revenue from leasing transactions and financing | 0 | 0 | 0 | 0 |
Total consolidated revenue | 39,635 | 44,818 | 118,117 | 142,261 |
Rentals | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 0 | 0 | 0 | 0 |
Revenue from leasing transactions and financing | 18,000 | 19,737 | 55,458 | 60,339 |
Total consolidated revenue | 18,000 | 19,737 | 55,458 | 60,339 |
Global Ecommerce | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from leasing transactions and financing | 409,981 | 278,995 | 1,100,757 | 827,568 |
Global Ecommerce | ASC 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 409,981 | 278,995 | 1,100,757 | 827,568 |
Global Ecommerce | Products/services transferred at a point in time | ASC 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 0 | 0 | 0 | 0 |
Global Ecommerce | Products/services transferred over time | ASC 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 409,981 | 278,995 | 1,100,757 | 827,568 |
Global Ecommerce | Sales And Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 409,981 | 278,995 | 1,100,757 | 827,568 |
Global Ecommerce | Business services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 409,981 | 278,995 | 1,100,757 | 827,568 |
Global Ecommerce | Support services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 0 | 0 | 0 | 0 |
Global Ecommerce | Financing | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 0 | 0 | 0 | 0 |
Revenue from leasing transactions and financing | 0 | 0 | 0 | 0 |
Global Ecommerce | Equipment sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 0 | 0 | 0 | 0 |
Revenue from leasing transactions and financing | 0 | 0 | 0 | 0 |
Global Ecommerce | Supplies | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 0 | 0 | 0 | 0 |
Global Ecommerce | Rentals | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 0 | 0 | 0 | 0 |
Revenue from leasing transactions and financing | 0 | 0 | 0 | 0 |
Presort Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from leasing transactions and financing | 127,705 | 131,483 | 386,552 | 394,468 |
Presort Services | ASC 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 127,705 | 131,483 | 386,552 | 394,468 |
Presort Services | Products/services transferred at a point in time | ASC 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 0 | 0 | 0 | 0 |
Presort Services | Products/services transferred over time | ASC 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 127,705 | 131,483 | 386,552 | 394,468 |
Presort Services | Sales And Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 127,705 | 131,483 | 386,552 | 394,468 |
Presort Services | Business services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 127,705 | 131,483 | 386,552 | 394,468 |
Presort Services | Support services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 0 | 0 | 0 | 0 |
Presort Services | Financing | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 0 | 0 | 0 | 0 |
Revenue from leasing transactions and financing | 0 | 0 | 0 | 0 |
Presort Services | Equipment sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 0 | 0 | 0 | 0 |
Revenue from leasing transactions and financing | 0 | 0 | 0 | 0 |
Presort Services | Supplies | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 0 | 0 | 0 | 0 |
Presort Services | Rentals | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 0 | 0 | 0 | 0 |
Revenue from leasing transactions and financing | 0 | 0 | 0 | 0 |
SendTech Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from leasing transactions and financing | 354,212 | 379,647 | 1,038,349 | 1,151,746 |
SendTech Solutions | ASC 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 188,357 | 198,777 | 558,007 | 606,151 |
SendTech Solutions | Products/services transferred at a point in time | ASC 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 73,602 | 81,547 | 210,726 | 251,214 |
SendTech Solutions | Products/services transferred over time | ASC 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 114,755 | 117,230 | 347,281 | 354,937 |
SendTech Solutions | Sales And Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 188,357 | 198,777 | 558,007 | 606,151 |
SendTech Solutions | Business services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 13,268 | 8,623 | 37,014 | 21,573 |
SendTech Solutions | Support services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 117,519 | 126,274 | 353,320 | 382,578 |
SendTech Solutions | Financing | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 0 | 0 | 0 | 0 |
Revenue from leasing transactions and financing | 86,218 | 90,577 | 260,758 | 280,039 |
SendTech Solutions | Equipment sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 17,935 | 19,062 | 49,556 | 59,739 |
Revenue from leasing transactions and financing | 61,637 | 70,556 | 164,126 | 205,217 |
SendTech Solutions | Supplies | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 39,635 | 44,818 | 118,117 | 142,261 |
SendTech Solutions | Rentals | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 0 | 0 | 0 | 0 |
Revenue from leasing transactions and financing | $ 18,000 | $ 19,737 | $ 55,458 | $ 60,339 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Advanced billings, revenue recognized | $ 78 | |
Lease transactions | $ 8 | $ 9 |
Expected timing of satisfaction period | 12 months | |
Business services | Minimum | ||
Disaggregation of Revenue [Line Items] | ||
Period of recognition | 1 year | |
Business services | Maximum | ||
Disaggregation of Revenue [Line Items] | ||
Period of recognition | 5 years |
Revenue (Contract Assets and Ad
Revenue (Contract Assets and Advance Billings) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Advance billings, current | $ 94,454 | $ 92,464 |
Advance billings, noncurrent | 1,117 | $ 1,245 |
Increase/ (decrease) | ||
Advance billings, current | 1,990 | |
Advance billings, noncurrent | $ (128) |
Revenue (Future Performance Obl
Revenue (Future Performance Obligations) (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Revenue from Contract with Customer [Abstract] | |
Future performance obligations | $ 725,871 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |
Revenue from Contract with Customer [Abstract] | |
Future performance obligations | $ 73,963 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction period | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Future performance obligations | $ 263,673 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Future performance obligations | $ 388,235 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction period | 3 years |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment reporting information profit (loss) | |||||||
Revenue | $ 891,898 | $ 790,125 | $ 2,525,658 | $ 2,373,782 | |||
Reconciliation of Segment EBIT to net income (loss): | |||||||
Restructuring charges and asset impairments | (3,766) | (47,017) | (12,505) | (56,616) | |||
Interest expense, net | (27,175) | (28,704) | (79,504) | (84,325) | |||
Gain on sale of equity investment | $ 12,000 | 21,969 | 0 | ||||
Goodwill impairment | 0 | 0 | (198,169) | 0 | |||
Loss on extinguishment of debt | $ (37,000) | 0 | (667) | (36,987) | (667) | ||
(Provision) benefit for income taxes | (554) | 24,895 | (7,540) | 13,351 | |||
Income (loss) from continuing operations | 10,773 | 5,345 | (208,071) | 32,112 | |||
Income (loss) from discontinued operations, net of tax | 616 | (8,470) | 7,648 | (14,199) | |||
Net income (loss) | 11,389 | (3,125) | (200,423) | 17,913 | |||
Operating Segments | |||||||
Segment reporting information profit (loss) | |||||||
EBIT | 107,323 | 126,848 | 298,061 | 374,341 | |||
Segment Reconciling Items | |||||||
Reconciliation of Segment EBIT to net income (loss): | |||||||
Unallocated corporate expenses | (53,429) | (58,277) | (146,640) | (160,283) | |||
Restructuring charges and asset impairments | (3,766) | (47,017) | (12,505) | (56,616) | |||
Interest expense, net | (38,801) | (39,730) | (115,558) | (117,758) | |||
Gain on sale of equity investment | 0 | 0 | 11,908 | 0 | |||
Goodwill impairment | 0 | 0 | (198,169) | 0 | |||
Loss on extinguishment of debt | 0 | (667) | (36,987) | (667) | |||
Loss on dispositions | 0 | 0 | 0 | (17,683) | |||
Transaction costs | 0 | (707) | (641) | (2,573) | |||
(Provision) benefit for income taxes | (554) | 24,895 | (7,540) | 13,351 | |||
Insurance claim | 6,000 | 15,000 | |||||
Commerce Services | |||||||
Segment reporting information profit (loss) | |||||||
Revenue from contracts with customers | 537,686 | 410,478 | 1,487,309 | 1,222,036 | |||
Reconciliation of Segment EBIT to net income (loss): | |||||||
Goodwill impairment | (198,169) | ||||||
Commerce Services | Operating Segments | |||||||
Segment reporting information profit (loss) | |||||||
EBIT | (5,276) | (4,106) | (25,368) | (3,754) | |||
Commerce Services | Global Ecommerce | |||||||
Segment reporting information profit (loss) | |||||||
Revenue from contracts with customers | 409,981 | 278,995 | 1,100,757 | 827,568 | |||
EBIT | (19,757) | (21,793) | (68,126) | (51,969) | |||
Reconciliation of Segment EBIT to net income (loss): | |||||||
Goodwill impairment | $ (198,000) | (198,169) | |||||
Commerce Services | Presort Services | |||||||
Segment reporting information profit (loss) | |||||||
Revenue from contracts with customers | 127,705 | 131,483 | 386,552 | 394,468 | |||
EBIT | 14,481 | 17,687 | 42,758 | 48,215 | |||
Reconciliation of Segment EBIT to net income (loss): | |||||||
Goodwill impairment | 0 | ||||||
SendTech Solutions | |||||||
Segment reporting information profit (loss) | |||||||
Revenue from contracts with customers | 354,212 | 379,647 | 1,038,349 | 1,151,746 | |||
Reconciliation of Segment EBIT to net income (loss): | |||||||
Goodwill impairment | 0 | ||||||
SendTech Solutions | Operating Segments | |||||||
Segment reporting information profit (loss) | |||||||
EBIT | $ 112,599 | $ 130,954 | $ 323,429 | $ 378,095 |
Discontinued Operations (Financ
Discontinued Operations (Financial Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income (loss) from discontinued operations, net of tax | $ 616 | $ (8,470) | $ 7,648 | $ (14,199) |
Disposed of by Sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenue | 0 | 73,620 | 0 | 219,144 |
Earnings (loss) from discontinued operations | 0 | 8,633 | 0 | 12,671 |
Gain (loss) on sale | 474 | (18,157) | 7,176 | (29,178) |
Income (loss) from discontinued operations before taxes | 474 | (9,524) | 7,176 | (16,507) |
Tax benefit | (142) | (1,054) | (472) | (2,308) |
Income (loss) from discontinued operations, net of tax | 616 | (8,470) | 7,648 | (14,199) |
Software Solutions | Disposed of by Sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenue | 0 | 73,620 | 0 | 219,144 |
Earnings (loss) from discontinued operations | 0 | 8,633 | 0 | 13,334 |
Gain (loss) on sale | 474 | (12,447) | 7,343 | (14,211) |
Income (loss) from discontinued operations before taxes | 474 | (3,814) | 7,343 | (877) |
Production Mail | Disposed of by Sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Earnings (loss) from discontinued operations | 0 | 0 | 0 | (663) |
Gain (loss) on sale | 0 | (5,710) | (167) | (14,967) |
Income (loss) from discontinued operations before taxes | $ 0 | $ (5,710) | $ (167) | $ (15,630) |
Earnings per Share (EPS) (Detai
Earnings per Share (EPS) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Earnings Per Share [Abstract] | |||||
Income (loss) from continuing operations | $ 10,773 | $ 5,345 | $ (208,071) | $ 32,112 | |
Numerator: | |||||
Income (loss) from discontinued operations, net of tax | 616 | (8,470) | 7,648 | (14,199) | |
Net income (loss) | 11,389 | (3,125) | (200,423) | 17,913 | |
Less: Preference stock dividend | 0 | 0 | 0 | 8 | |
Income (loss) attributable to common stockholders (numerator for basic EPS) | $ 11,389 | $ (3,125) | $ (200,423) | $ 17,905 | |
Denominator: | |||||
Weighted-average shares used in basic EPS (in shares) | 171,828,000 | 170,326,000 | 171,388,000 | 178,048,000 | |
Dilutive effect of common stock equivalents (in shares) | 2,876,000 | 875,000 | 0 | 1,048,000 | |
Weighted-average shares used in diluted EPS (in shares) | 174,704,000 | 171,201,000 | 171,388,000 | 179,096,000 | |
Basic earnings (loss) per share: | |||||
Continuing operations (in dollars per share) | [1] | $ 0.06 | $ 0.03 | $ (1.21) | $ 0.18 |
Discontinued operations (in dollars per share) | [1] | 0 | (0.05) | 0.04 | (0.08) |
Net (loss) income (in dollars per share) | [1] | 0.07 | (0.02) | (1.17) | 0.10 |
Diluted earnings (loss) per share: | |||||
Continuing operations (in dollars per share) | [1] | 0.06 | 0.03 | (1.21) | 0.18 |
Discontinued operations (in dollars per share) | [1] | 0 | (0.05) | 0.04 | (0.08) |
Net (loss) income (in dollars per share) | [1] | $ 0.07 | $ (0.02) | $ (1.17) | $ 0.10 |
Common stock equivalents excluded from calculation of diluted earnings per share because their impact would be anti-dilutive (in shares) | 14,828,000 | 16,182,000 | 15,855,000 | 16,166,000 | |
Dilutive effect of common stock equivalents | 1,604,000 | ||||
[1] | The sum of the earnings per share amounts may not equal the totals due to rounding. |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 16,174 | $ 13,514 |
Supplies and service parts | 22,628 | 21,840 |
Finished products | 31,957 | 36,969 |
Inventory at FIFO cost | 70,759 | 72,323 |
Excess of FIFO cost over LIFO cost | (3,785) | (4,072) |
Total inventory, net | $ 66,974 | $ 68,251 |
Finance Assets and Lessor Ope_3
Finance Assets and Lessor Operating Leases (Finance Receivables) (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for credit losses | $ (38,068) | $ (19,651) | $ (20,124) | $ (20,222) |
Net investment in receivables | 1,146,696 | 1,255,130 | ||
North America | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Net investment in receivables | 975,321 | 1,059,926 | ||
International | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Net investment in receivables | 171,375 | 195,204 | ||
Sales-type lease receivables | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross finance receivables | 1,183,065 | 1,280,054 | ||
Unguaranteed residual values | 48,800 | 53,723 | ||
Unearned income | (329,310) | (385,169) | ||
Allowance for credit losses | (30,788) | (13,005) | ||
Net investment in receivables | 871,767 | 935,603 | ||
Sales-type lease receivables | North America | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross finance receivables | 981,475 | 1,055,852 | ||
Unguaranteed residual values | 37,191 | 41,934 | ||
Unearned income | (270,499) | (319,281) | ||
Allowance for credit losses | (25,886) | (10,920) | (11,172) | (10,253) |
Net investment in receivables | 722,281 | 767,585 | ||
Sales-type lease receivables | International | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross finance receivables | 201,590 | 224,202 | ||
Unguaranteed residual values | 11,609 | 11,789 | ||
Unearned income | (58,811) | (65,888) | ||
Allowance for credit losses | (4,902) | (2,085) | (2,217) | (2,355) |
Net investment in receivables | 149,486 | 168,018 | ||
Loan receivables | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross finance receivables | 282,209 | 326,173 | ||
Allowance for credit losses | (7,280) | (6,646) | ||
Net investment in receivables | 274,929 | 319,527 | ||
Loan receivables | North America | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross finance receivables | 259,832 | 298,247 | ||
Allowance for credit losses | (6,792) | (5,906) | (6,016) | (6,777) |
Net investment in receivables | 253,040 | 292,341 | ||
Loan receivables | International | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross finance receivables | 22,377 | 27,926 | ||
Allowance for credit losses | (488) | (740) | $ (719) | $ (837) |
Net investment in receivables | $ 21,889 | $ 27,186 | ||
Minimum | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Lease period | 3 years | |||
Maximum | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Lease period | 5 years |
Finance Assets and Lessor Ope_4
Finance Assets and Lessor Operating Leases (Sales-type Lease and Loan Receivables) (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Sales-type Lease Receivables | |
Remaining for year ending December 31, 2020 | $ 150,445 |
Year ending December 31, 2021 | 434,255 |
Year ending December 31, 2022 | 309,151 |
Year ending December 31, 2023 | 182,533 |
Year ending December 31, 2024 | 88,034 |
Thereafter | 18,647 |
Total | 1,183,065 |
Loan Receivables | |
Remaining for year ending December 31, 2020 | 237,970 |
Year ending December 31, 2021 | 13,314 |
Year ending December 31, 2022 | 11,507 |
Year ending December 31, 2023 | 6,394 |
Year ending December 31, 2024 | 7,023 |
Thereafter | 6,001 |
Total | 282,209 |
North America | |
Sales-type Lease Receivables | |
Remaining for year ending December 31, 2020 | 114,724 |
Year ending December 31, 2021 | 359,198 |
Year ending December 31, 2022 | 259,729 |
Year ending December 31, 2023 | 155,254 |
Year ending December 31, 2024 | 77,034 |
Thereafter | 15,536 |
Total | 981,475 |
Loan Receivables | |
Remaining for year ending December 31, 2020 | 215,593 |
Year ending December 31, 2021 | 13,314 |
Year ending December 31, 2022 | 11,507 |
Year ending December 31, 2023 | 6,394 |
Year ending December 31, 2024 | 7,023 |
Thereafter | 6,001 |
Total | 259,832 |
International | |
Sales-type Lease Receivables | |
Remaining for year ending December 31, 2020 | 35,721 |
Year ending December 31, 2021 | 75,057 |
Year ending December 31, 2022 | 49,422 |
Year ending December 31, 2023 | 27,279 |
Year ending December 31, 2024 | 11,000 |
Thereafter | 3,111 |
Total | 201,590 |
Loan Receivables | |
Remaining for year ending December 31, 2020 | 22,377 |
Year ending December 31, 2021 | 0 |
Year ending December 31, 2022 | 0 |
Year ending December 31, 2023 | 0 |
Year ending December 31, 2024 | 0 |
Thereafter | 0 |
Total | $ 22,377 |
Finance Assets and Lessor Ope_5
Finance Assets and Lessor Operating Leases (Aging of Receivables) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Past Due [Line Items] | ||
Total | $ 1,465,274 | $ 1,606,227 |
Still accruing interest | 5,583 | 8,131 |
Not accruing interest | 21,882 | 22,667 |
Total | 27,465 | 30,798 |
1 - 90 days | ||
Financing Receivable, Past Due [Line Items] | ||
Past due | 1,437,809 | 1,575,429 |
Greater than 90 days | ||
Financing Receivable, Past Due [Line Items] | ||
Past due | 27,465 | 30,798 |
Sales-type lease receivables | North America | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 981,475 | 1,055,852 |
Still accruing interest | 3,365 | 4,835 |
Not accruing interest | 16,764 | 18,105 |
Total | 20,129 | 22,940 |
Sales-type lease receivables | North America | 1 - 90 days | ||
Financing Receivable, Past Due [Line Items] | ||
Past due | 961,346 | 1,032,912 |
Sales-type lease receivables | North America | Greater than 90 days | ||
Financing Receivable, Past Due [Line Items] | ||
Past due | 20,129 | 22,940 |
Sales-type lease receivables | International | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 201,590 | 224,202 |
Still accruing interest | 699 | 1,081 |
Not accruing interest | 1,326 | 2,302 |
Total | 2,025 | 3,383 |
Sales-type lease receivables | International | 1 - 90 days | ||
Financing Receivable, Past Due [Line Items] | ||
Past due | 199,565 | 220,819 |
Sales-type lease receivables | International | Greater than 90 days | ||
Financing Receivable, Past Due [Line Items] | ||
Past due | 2,025 | 3,383 |
Loan receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 282,209 | |
Loan receivables | North America | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 259,832 | 298,247 |
Still accruing interest | 1,461 | 2,094 |
Not accruing interest | 3,569 | 2,152 |
Total | 5,030 | 4,246 |
Loan receivables | North America | 1 - 90 days | ||
Financing Receivable, Past Due [Line Items] | ||
Past due | 254,802 | 294,001 |
Loan receivables | North America | Greater than 90 days | ||
Financing Receivable, Past Due [Line Items] | ||
Past due | 5,030 | 4,246 |
Loan receivables | International | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 22,377 | 27,926 |
Still accruing interest | 58 | 121 |
Not accruing interest | 223 | 108 |
Total | 281 | 229 |
Loan receivables | International | 1 - 90 days | ||
Financing Receivable, Past Due [Line Items] | ||
Past due | 22,096 | 27,697 |
Loan receivables | International | Greater than 90 days | ||
Financing Receivable, Past Due [Line Items] | ||
Past due | $ 281 | $ 229 |
Finance Assets and Lessor Ope_6
Finance Assets and Lessor Operating Leases (Allowance for Credit Losses) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Revenue recognition resume period (less than) | 60 days | |
Allowance for Credit Losses | ||
Beginning Balance | $ 19,651 | $ 20,222 |
Amounts charged to expense | 18,544 | 9,375 |
Write-offs | (14,211) | (13,485) |
Recoveries | 3,979 | 4,198 |
Currency impact | 602 | (186) |
Ending Balance | 38,068 | 20,124 |
Cumulative Effect | ||
Allowance for Credit Losses | ||
Beginning Balance | $ 9,503 | |
Sales-type lease receivables | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Average term | 5 years | |
Revenue recognition discontinuation period (more than) | 120 days | |
Allowance for Credit Losses | ||
Beginning Balance | $ 13,005 | |
Ending Balance | 30,788 | |
Sales-type lease receivables | North America | ||
Allowance for Credit Losses | ||
Beginning Balance | 10,920 | 10,253 |
Amounts charged to expense | 10,009 | 4,587 |
Write-offs | (5,950) | (5,153) |
Recoveries | 1,488 | 1,286 |
Currency impact | 148 | 199 |
Ending Balance | 25,886 | 11,172 |
Sales-type lease receivables | North America | Cumulative Effect | ||
Allowance for Credit Losses | ||
Beginning Balance | 9,271 | |
Sales-type lease receivables | International | ||
Allowance for Credit Losses | ||
Beginning Balance | 2,085 | 2,355 |
Amounts charged to expense | 1,314 | 801 |
Write-offs | (548) | (842) |
Recoveries | 91 | 157 |
Currency impact | 210 | (254) |
Ending Balance | 4,902 | 2,217 |
Sales-type lease receivables | International | Cumulative Effect | ||
Allowance for Credit Losses | ||
Beginning Balance | $ 1,750 | |
Loan receivables | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Average term | 3 years | |
Revenue recognition discontinuation period (more than) | 90 days | |
Allowance for Credit Losses | ||
Beginning Balance | $ 6,646 | |
Ending Balance | 7,280 | |
Loan receivables | North America | ||
Allowance for Credit Losses | ||
Beginning Balance | 5,906 | 6,777 |
Amounts charged to expense | 6,792 | 3,547 |
Write-offs | (7,370) | (6,882) |
Recoveries | 2,399 | 2,746 |
Currency impact | 181 | (172) |
Ending Balance | 6,792 | 6,016 |
Loan receivables | North America | Cumulative Effect | ||
Allowance for Credit Losses | ||
Beginning Balance | (1,116) | |
Loan receivables | International | ||
Allowance for Credit Losses | ||
Beginning Balance | 740 | 837 |
Amounts charged to expense | 429 | 440 |
Write-offs | (343) | (608) |
Recoveries | 1 | 9 |
Currency impact | 63 | 41 |
Ending Balance | 488 | $ 719 |
Loan receivables | International | Cumulative Effect | ||
Allowance for Credit Losses | ||
Beginning Balance | $ (402) |
Finance Assets and Lessor Ope_7
Finance Assets and Lessor Operating Leases (Credit Quality) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 1,465,274 | $ 1,606,227 |
Low | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Approximate percentage of portfolio | 30.00% | |
Total | $ 936,779 | |
Medium | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Approximate percentage of portfolio | 40.00% | |
Total | $ 239,830 | |
High | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Approximate percentage of portfolio | 30.00% | |
Total | $ 25,443 | |
Not Scored | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 263,222 | |
International | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Receivables subject to review | $ 50 | |
Percent of applications approved or denied | 80.00% | |
Sales-type lease receivables | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | $ 289,019 | |
2019 | 375,065 | |
2018 | 278,842 | |
2017 | 157,426 | |
2016 | 61,388 | |
Prior | 21,325 | |
Sales-type lease receivables | Low | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 187,763 | |
2019 | 230,942 | |
2018 | 178,224 | |
2017 | 101,307 | |
2016 | 37,346 | |
Prior | 15,488 | |
Sales-type lease receivables | Medium | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 39,810 | |
2019 | 58,779 | |
2018 | 42,501 | |
2017 | 24,903 | |
2016 | 10,491 | |
Prior | 3,924 | |
Sales-type lease receivables | High | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 5,752 | |
2019 | 6,219 | |
2018 | 4,722 | |
2017 | 2,605 | |
2016 | 1,344 | |
Prior | 184 | |
Sales-type lease receivables | Not Scored | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 55,694 | |
2019 | 79,125 | |
2018 | 53,395 | |
2017 | 28,611 | |
2016 | 12,207 | |
Prior | 1,729 | |
Sales-type lease receivables | International | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 201,590 | 224,202 |
Loan receivables | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 282,209 | |
Loan receivables | Low | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 185,709 | |
Loan receivables | Medium | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 59,422 | |
Loan receivables | High | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 4,617 | |
Loan receivables | Not Scored | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 32,461 | |
Loan receivables | International | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 22,377 | $ 27,926 |
Finance Assets and Lessor Ope_8
Finance Assets and Lessor Operating Leases (Lease Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Leases [Abstract] | ||||
Profit recognized at commencement | $ 29,169 | $ 39,326 | $ 80,349 | $ 112,422 |
Interest income | 33,654 | 56,522 | 101,969 | 174,045 |
Total lease income from sales-type leases | $ 62,823 | $ 95,848 | $ 182,318 | $ 286,467 |
Finance Assets and Lessor Ope_9
Finance Assets and Lessor Operating Leases (Operating Leases) (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Lessor, Lease, Description [Line Items] | |
Remaining for year ending December 31, 2020 | $ 17,351 |
Year ending December 31, 2021 | 36,396 |
Year ending December 31, 2022 | 13,688 |
Year ending December 31, 2023 | 7,172 |
Year ending December 31, 2024 | 2,100 |
Thereafter | 399 |
Total | $ 77,106 |
Mailing Equipment | Minimum | |
Lessor, Lease, Description [Line Items] | |
Term | 1 year |
Mailing Equipment | Maximum | |
Lessor, Lease, Description [Line Items] | |
Term | 5 years |
Intangible Assets, Goodwill a_3
Intangible Assets, Goodwill and Other Assets (Intangible Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Finite lived intangible assets | |||||
Gross Carrying Amount | $ 313,119 | $ 313,119 | $ 310,589 | ||
Accumulated Amortization | (145,626) | (145,626) | (119,949) | ||
Net Carrying Amount | 167,493 | 167,493 | 190,640 | ||
Amortization expense | 8,000 | $ 9,000 | 26,000 | $ 27,000 | |
Customer relationships | |||||
Finite lived intangible assets | |||||
Gross Carrying Amount | 268,195 | 268,195 | 265,665 | ||
Accumulated Amortization | (108,338) | (108,338) | (88,550) | ||
Net Carrying Amount | 159,857 | 159,857 | 177,115 | ||
Software & technology | |||||
Finite lived intangible assets | |||||
Gross Carrying Amount | 31,600 | 31,600 | 31,600 | ||
Accumulated Amortization | (23,969) | (23,969) | (19,999) | ||
Net Carrying Amount | 7,631 | 7,631 | 11,601 | ||
Trademarks & other | |||||
Finite lived intangible assets | |||||
Gross Carrying Amount | 13,324 | 13,324 | 13,324 | ||
Accumulated Amortization | (13,319) | (13,319) | (11,400) | ||
Net Carrying Amount | $ 5 | $ 5 | $ 1,924 |
Intangible Assets, Goodwill a_4
Intangible Assets, Goodwill and Other Assets (Future Amortization Expense) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Finite lived intangible assets future amortization expense | ||
Remaining for year ending December 31, 2020 | $ 7,683 | |
Year ending December 31, 2021 | 30,265 | |
Year ending December 31, 2022 | 29,315 | |
Year ending December 31, 2023 | 26,465 | |
Year ending December 31, 2024 | 26,465 | |
Thereafter | 47,300 | |
Net Carrying Amount | $ 167,493 | $ 190,640 |
Intangible Assets, Goodwill a_5
Intangible Assets, Goodwill and Other Assets (Goodwill) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Goodwill | ||||||
Beginning balance | $ 1,324,179 | $ 1,324,179 | ||||
Impairment | $ 0 | $ 0 | (198,169) | $ 0 | ||
Acquisition | 8,463 | |||||
Currency impact | 7,671 | |||||
Ending balance | 1,142,144 | 1,142,144 | ||||
Commerce Services | ||||||
Goodwill | ||||||
Beginning balance | 821,960 | 821,960 | ||||
Impairment | (198,169) | |||||
Acquisition | 8,463 | |||||
Currency impact | 0 | |||||
Ending balance | 632,254 | 632,254 | ||||
Commerce Services | Global Ecommerce | ||||||
Goodwill | ||||||
Beginning balance | 609,431 | 609,431 | ||||
Impairment | (198,000) | (198,169) | ||||
Acquisition | 0 | |||||
Currency impact | 0 | |||||
Ending balance | 411,262 | 411,262 | ||||
Carrying value percentage | 20.00% | |||||
Commerce Services | Presort Services | ||||||
Goodwill | ||||||
Beginning balance | 212,529 | 212,529 | ||||
Impairment | 0 | |||||
Acquisition | 8,463 | |||||
Currency impact | 0 | |||||
Ending balance | 220,992 | 220,992 | ||||
SendTech Solutions | ||||||
Goodwill | ||||||
Beginning balance | $ 502,219 | 502,219 | ||||
Impairment | 0 | |||||
Acquisition | 0 | |||||
Currency impact | 7,671 | |||||
Ending balance | $ 509,890 | $ 509,890 |
Intangible Assets, Goodwill a_6
Intangible Assets, Goodwill and Other Assets (Other Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Summary of Investment Holdings [Line Items] | ||||
Proceeds from surrender of life insurance policy | $ 46,000 | |||
Income tax expense from surrender of life insurance policy | 12,000 | $ 12,000 | ||
Proceeds from sale of equity investment | 12,000 | |||
Gain on sale of equity investment | $ 12,000 | 21,969 | $ 0 | |
Other Assets | ||||
Summary of Investment Holdings [Line Items] | ||||
Long-term investments | $ 426,000 | $ 289,000 |
Fair Value Measurements and D_3
Fair Value Measurements and Derivative Instruments (Assets and Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | $ 394,474 | $ 222,120 |
Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 557,299 | 401,805 |
Equity securities | 22,555 | 21,979 |
Mortgage-backed / asset-backed securities | 275,352 | 66,339 |
Total assets | 998,034 | 667,638 |
Liabilities | (3,994) | (1,402) |
Level 1 | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 116,806 | 161,441 |
Equity securities | 0 | 0 |
Mortgage-backed / asset-backed securities | 0 | 0 |
Total assets | 135,934 | 227,669 |
Liabilities | 0 | 0 |
Level 2 | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 440,493 | 240,364 |
Equity securities | 22,555 | 21,979 |
Mortgage-backed / asset-backed securities | 275,352 | 66,339 |
Total assets | 862,100 | 439,969 |
Liabilities | (3,994) | (1,402) |
Level 3 | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 0 |
Equity securities | 0 | 0 |
Mortgage-backed / asset-backed securities | 0 | 0 |
Total assets | 0 | 0 |
Liabilities | 0 | 0 |
Foreign exchange contracts | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 2,603 | 3,256 |
Derivative liabilities | (1,086) | (1,402) |
Foreign exchange contracts | Level 1 | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liabilities | 0 | 0 |
Foreign exchange contracts | Level 2 | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 2,603 | 3,256 |
Derivative liabilities | (1,086) | (1,402) |
Foreign exchange contracts | Level 3 | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liabilities | 0 | 0 |
Commingled fixed income securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 1,720 | 1,656 |
Commingled fixed income securities | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 21,257 | 20,060 |
Commingled fixed income securities | Level 1 | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 1,720 | 1,656 |
Commingled fixed income securities | Level 2 | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 19,537 | 18,404 |
Commingled fixed income securities | Level 3 | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 0 |
Government and related securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 34,443 | 81,976 |
Government and related securities | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 36,009 | 82,050 |
Government and related securities | Level 1 | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 17,408 | 64,572 |
Government and related securities | Level 2 | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 18,601 | 17,478 |
Government and related securities | Level 3 | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 0 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 82,959 | 72,149 |
Corporate debt securities | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 82,959 | 72,149 |
Corporate debt securities | Level 1 | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 0 |
Corporate debt securities | Level 2 | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 82,959 | 72,149 |
Corporate debt securities | Level 3 | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | $ 0 |
Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | (2,908) | |
Interest rate swaps | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 0 | |
Interest rate swaps | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | (2,908) | |
Interest rate swaps | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | $ 0 |
Fair Value Measurements and D_4
Fair Value Measurements and Derivative Instruments (Available-for-sale Securities) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 398,054 | $ 218,512 |
Gross unrealized gains | 1,063 | 4,327 |
Gross unrealized losses | (4,643) | (719) |
Estimated fair value | 394,474 | 222,120 |
Government and related securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 35,018 | 80,732 |
Gross unrealized gains | 144 | 1,358 |
Gross unrealized losses | (719) | (114) |
Estimated fair value | 34,443 | 81,976 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 84,457 | 70,426 |
Gross unrealized gains | 422 | 2,009 |
Gross unrealized losses | (1,920) | (286) |
Estimated fair value | 82,959 | 72,149 |
Commingled fixed income securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 1,699 | 1,675 |
Gross unrealized gains | 21 | 0 |
Gross unrealized losses | 0 | (19) |
Estimated fair value | 1,720 | 1,656 |
Mortgage-backed / asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 276,880 | 65,679 |
Gross unrealized gains | 476 | 960 |
Gross unrealized losses | (2,004) | (300) |
Estimated fair value | $ 275,352 | $ 66,339 |
Fair Value Measurements and D_5
Fair Value Measurements and Derivative Instruments (Unrealized Holding Losses) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value Disclosures [Abstract] | ||
Less than 12 continuous months | $ 314,145 | $ 52,521 |
Greater than 12 continuous months | 3,157 | 9,227 |
Total | 317,302 | 61,748 |
Gross unrealized losses | ||
Less than 12 continuous months | 4,543 | 583 |
Greater than 12 continuous months | 100 | 136 |
Total | $ 4,643 | $ 719 |
Fair Value Measurements and D_6
Fair Value Measurements and Derivative Instruments (Narrative) (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Percentage of securities in loss position | 30.00% | |
Time deposits | $ 25,000,000 | $ 383,000,000 |
Foreign exchange contracts | ||
Derivative [Line Items] | ||
Derivative notional amount | 9,000,000 | $ 7,000,000 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative notional amount | $ 500,000,000 |
Fair Value Measurements and D_7
Fair Value Measurements and Derivative Instruments (Available-for-sale Securities Maturities) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Amortized cost | ||
Within 1 year | $ 19,299 | |
After 1 year through 5 years | 9,354 | |
After 5 years through 10 years | 54,448 | |
After 10 years | 314,953 | |
Total | 398,054 | $ 218,512 |
Estimated fair value | ||
Within 1 year | 19,379 | |
After 1 year through 5 years | 9,553 | |
After 5 years through 10 years | 53,476 | |
After 10 years | 312,066 | |
Total | $ 394,474 | $ 222,120 |
Fair Value Measurements and D_8
Fair Value Measurements and Derivative Instruments (Derivative Instruments) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Total net derivative (liability) asset | $ (1,391) | $ 1,854 |
Total derivative assets | ||
Derivative [Line Items] | ||
Total net derivative (liability) asset | 2,603 | 3,256 |
Total derivative liabilities | ||
Derivative [Line Items] | ||
Total net derivative (liability) asset | (3,994) | (1,402) |
Foreign exchange contracts | Derivatives designated as hedging instruments | Other current assets and prepayments | ||
Derivative [Line Items] | ||
Total net derivative (liability) asset | 15 | 207 |
Foreign exchange contracts | Derivatives designated as hedging instruments | Accounts payable and accrued liabilities | ||
Derivative [Line Items] | ||
Total net derivative (liability) asset | (154) | (56) |
Foreign exchange contracts | Derivatives not designated as hedging instruments | Other current assets and prepayments | ||
Derivative [Line Items] | ||
Total net derivative (liability) asset | 2,588 | 3,049 |
Foreign exchange contracts | Derivatives not designated as hedging instruments | Accounts payable and accrued liabilities | ||
Derivative [Line Items] | ||
Total net derivative (liability) asset | (932) | (1,346) |
Interest rate swaps | Derivatives designated as hedging instruments | Other noncurrent liabilities | ||
Derivative [Line Items] | ||
Total net derivative (liability) asset | $ (2,908) | $ 0 |
Fair Value Measurements and D_9
Fair Value Measurements and Derivative Instruments (Cash Flow Hedging Relationships) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative [Line Items] | ||||
Derivative Gain (Loss) Recognized in AOCI (Effective Portion) | $ (1,383) | $ 156 | $ (3,269) | $ 181 |
Gain (Loss) Reclassified from AOCI to Earnings (Effective Portion) | (110) | (44) | (71) | 76 |
Foreign exchange contracts | ||||
Derivative [Line Items] | ||||
Derivative Gain (Loss) Recognized in AOCI (Effective Portion) | (80) | 156 | (361) | 181 |
Foreign exchange contracts | Revenue | ||||
Derivative [Line Items] | ||||
Gain (Loss) Reclassified from AOCI to Earnings (Effective Portion) | (104) | (98) | (107) | (23) |
Foreign exchange contracts | Cost of sales | ||||
Derivative [Line Items] | ||||
Gain (Loss) Reclassified from AOCI to Earnings (Effective Portion) | (6) | 54 | 36 | 99 |
Foreign exchange contracts | Selling, general and administrative expense | ||||
Derivative [Line Items] | ||||
Derivative Gain (Loss) Recognized in Earnings | 891 | (11,385) | (2,776) | (6,181) |
Interest rate swaps | ||||
Derivative [Line Items] | ||||
Derivative Gain (Loss) Recognized in AOCI (Effective Portion) | (1,303) | 0 | (2,908) | 0 |
Interest rate swaps | Interest expense | ||||
Derivative [Line Items] | ||||
Gain (Loss) Reclassified from AOCI to Earnings (Effective Portion) | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value Measurements and _10
Fair Value Measurements and Derivative Instruments (Fair Value of Debt) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | $ 2,595,221 | $ 2,739,722 |
Fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | $ 2,426,516 | $ 2,572,794 |
Restructuring Charges and Ass_3
Restructuring Charges and Asset Impairments (Restructuring Charges) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Restructuring Costs | ||
Balance Beginning | $ 12,006 | $ 15,449 |
Expenses, net | 9,856 | 13,343 |
Cash payments | (15,869) | (18,845) |
Balance Ending | $ 5,993 | 9,947 |
Minimum | ||
Restructuring Costs | ||
Restructuring reserve, expected payment period | 12 months | |
Maximum | ||
Restructuring Costs | ||
Restructuring reserve, expected payment period | 24 months | |
Severance and benefits costs | ||
Restructuring Costs | ||
Balance Beginning | $ 11,937 | 13,641 |
Expenses, net | 8,748 | 12,498 |
Cash payments | (14,714) | (16,362) |
Balance Ending | 5,971 | 9,777 |
Other exit costs | ||
Restructuring Costs | ||
Balance Beginning | 69 | 1,808 |
Expenses, net | 1,108 | 845 |
Cash payments | (1,155) | (2,483) |
Balance Ending | $ 22 | $ 170 |
Restructuring Charges and Ass_4
Restructuring Charges and Asset Impairments (Other Charges) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | ||
Asset impairment charges | $ 3 | $ 43 |
Debt (Schedule of Debt) (Detail
Debt (Schedule of Debt) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Principal amount | $ 2,643,636 | $ 2,765,949 |
Less: unamortized costs, net | 48,415 | 26,227 |
Total debt | 2,595,221 | 2,739,722 |
Less: current portion long-term debt | 63,509 | 20,108 |
Long-term debt | $ 2,531,712 | 2,719,614 |
Notes due | Notes due October 2021 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.625% | |
Principal amount | $ 170,253 | 600,000 |
Notes due | Notes due May 2022 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.375% | |
Principal amount | $ 148,792 | 400,000 |
Notes due | Notes due April 2023 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.70% | |
Principal amount | $ 271,000 | 400,000 |
Notes due | Notes due March 2024 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.625% | |
Principal amount | $ 374,000 | 500,000 |
Notes due | Notes due January 2037 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.25% | |
Principal amount | $ 35,841 | 35,841 |
Notes due | Notes due March 2043 | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.70% | |
Principal amount | $ 425,000 | 425,000 |
Notes due | Term loan due November 2024 | ||
Debt Instrument [Line Items] | ||
Principal amount | 385,000 | 400,000 |
Notes due | Term loan due January 2025 | ||
Debt Instrument [Line Items] | ||
Principal amount | 828,750 | 0 |
Other debt | ||
Debt Instrument [Line Items] | ||
Principal amount | $ 5,000 | $ 5,108 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||
Sep. 30, 2020 | May 31, 2020 | Mar. 31, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||||||||||||
Loss on extinguishment of debt | $ 37,000,000 | $ 0 | $ 667,000 | $ 36,987,000 | $ 667,000 | |||||||
Interest rate swaps | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Derivative notional amount | $ 500,000,000 | $ 500,000,000 | $ 500,000,000 | |||||||||
Fixed interest rate | 0.4443% | 0.4443% | 0.4443% | |||||||||
Notes due | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Repayments of debt | $ 36,000,000 | |||||||||||
Line of credit | Revolving credit facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Repayments of debt | $ 100,000,000 | |||||||||||
Maximum borrowing capacity | 500,000,000 | $ 500,000,000 | 500,000,000 | |||||||||
Long-term Line of Credit | 0 | 0 | 0 | $ 0 | ||||||||
Notes due October 2021 | Notes due | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Increase in interest rate | 0.50% | 0.50% | ||||||||||
Debt redeemed | 428,000,000 | |||||||||||
Notes due October 2021 | Notes due | Forecast | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Increase in interest rate | 0.25% | |||||||||||
Notes due May 2022 | Notes due | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Increase in interest rate | 0.75% | |||||||||||
Debt redeemed | 250,000,000 | |||||||||||
Notes due April 2023 | Notes due | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Increase in interest rate | 0.50% | 0.50% | ||||||||||
Debt redeemed | 125,000,000 | |||||||||||
Notes due April 2023 | Notes due | Forecast | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Increase in interest rate | 0.25% | |||||||||||
2025 Term Loan | Notes due | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt term | 5 years | |||||||||||
Loan amount | $ 850,000,000 | |||||||||||
2025 Term Loan | Notes due | LIBOR | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 5.50% | |||||||||||
2025 Term Loan | Variable-Rate Term Loan | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Loan amount | $ 500,000,000 | $ 500,000,000 | $ 500,000,000 | |||||||||
Notes due March 2024 | Notes due | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt redeemed | $ 125,000,000 |
Pensions and Other Benefit Pr_3
Pensions and Other Benefit Programs (Components of Net Periodic Benefit Cost (Income)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Defined Benefit Pension Plans | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 16 | $ 20 | $ 69 | $ 62 |
Interest cost | 12,719 | 15,792 | 39,077 | 47,378 |
Expected return on plan assets | (20,932) | (23,182) | (63,539) | (69,545) |
Amortization of transition credit | 0 | 0 | 0 | 0 |
Amortization of prior service (credit) cost | (15) | (15) | (45) | (45) |
Amortization of net actuarial loss | 7,972 | 6,537 | 24,367 | 19,610 |
Settlement | 75 | 1,477 | 1,076 | 2,278 |
Net periodic benefit cost (income) | (165) | 629 | 1,005 | (262) |
Contributions to benefit plans | 2,061 | 3,350 | 5,959 | 7,401 |
Defined Benefit Pension Plans | Foreign | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 422 | 385 | 1,220 | 1,157 |
Interest cost | 3,548 | 4,435 | 10,473 | 13,231 |
Expected return on plan assets | (8,297) | (8,340) | (24,474) | (25,609) |
Amortization of transition credit | (1) | (2) | (3) | (5) |
Amortization of prior service (credit) cost | 62 | 58 | 182 | 181 |
Amortization of net actuarial loss | 2,092 | 1,543 | 6,156 | 4,727 |
Settlement | 833 | 0 | 4,023 | 397 |
Net periodic benefit cost (income) | (1,341) | (1,921) | (2,423) | (5,921) |
Contributions to benefit plans | 445 | 652 | 9,013 | 9,740 |
Nonpension Postretirement Benefit Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 229 | 242 | 663 | 725 |
Interest cost | 1,255 | 1,646 | 3,742 | 4,937 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of transition credit | 0 | 0 | 0 | 0 |
Amortization of prior service (credit) cost | 93 | 80 | 280 | 241 |
Amortization of net actuarial loss | 926 | 507 | 2,400 | 1,521 |
Settlement | 0 | 0 | 0 | 0 |
Net periodic benefit cost (income) | 2,503 | 2,475 | 7,085 | 7,424 |
Contributions to benefit plans | $ 2,422 | $ 4,628 | $ 10,493 | $ 13,841 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |||||
Effective tax rate (percent) | 4.90% | 127.30% | (3.80%) | (71.20%) | |
Benefit from regulation changes | $ 3,000 | $ 3,000 | |||
Income tax expense from surrender of life insurance policy | $ 12,000 | 12,000 | |||
Benefit from goodwill impairment | 2,000 | ||||
Goodwill impairment | 0 | $ 0 | 198,169 | $ 0 | |
Tax benefit from resolution of settlement | 1,000 | 6,000 | |||
Deferred tax assets associated with the expiration of out-of-money vested stock options and the vesting of restricted stock | 3,000 | ||||
Valuation allowance released | 23,000 | ||||
Tax from Market Exits | 2,000 | ||||
Loss on sale of business | $ 0 | $ 0 | $ 0 | $ 17,683 | |
Percent decrease in unrecognized benefits, reasonably possible (up to) | 10.00% | 10.00% |
Commitments and Contingencies D
Commitments and Contingencies Disclosure (Details) $ in Millions | 1 Months Ended | ||
Feb. 28, 2019action | Dec. 31, 2018action | Sep. 30, 2020USD ($)lease | |
Lessee, Lease, Description [Line Items] | |||
Number of actions | action | 2 | 2 | |
Equipment | Commerce Services | |||
Lessee, Lease, Description [Line Items] | |||
Number of leases | lease | 3 | ||
Lease payments | $ | $ 30 | ||
Equipment | Commerce Services | Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Term of contract | 7 years | ||
Equipment | Commerce Services | Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Term of contract | 9 years |
Stockholders_ Equity (Details)
Stockholders’ Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Increase (Decrease) in Stockholders' Equity | ||||
Balances, beginning of period | $ 44,580 | $ 52,972 | $ 286,096 | $ 101,842 |
Net (loss) income | 11,389 | (3,125) | (200,423) | 17,913 |
Other comprehensive income (loss) | 22,690 | (18,774) | 26,571 | 22,509 |
Dividends paid | (8,594) | (8,508) | (25,693) | (26,854) |
Issuance of common stock | 774 | 1,145 | (762) | (588) |
Conversion to common stock | 0 | 0 | ||
Redemption of preferred/preference stock | (277) | |||
Stock-based compensation expense | 8,286 | 6,702 | 15,236 | 15,867 |
Repurchase of common stock | (5,000) | (105,000) | ||
Balances, end of period | $ 79,125 | $ 25,412 | $ 79,125 | $ 25,412 |
Dividends paid (USD per share) | $ 0.05 | $ 0.05 | $ 0.15 | $ 0.15 |
Cumulative Effect | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Balances, beginning of period | $ (21,900) | |||
Preferred stock | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Balances, beginning of period | $ 1 | |||
Redemption of preferred/preference stock | (1) | |||
Balances, end of period | $ 0 | 0 | ||
Preference stock | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Balances, beginning of period | 396 | |||
Conversion to common stock | (130) | |||
Redemption of preferred/preference stock | (266) | |||
Balances, end of period | 0 | 0 | ||
Common stock | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Balances, beginning of period | $ 323,338 | 323,338 | 323,338 | 323,338 |
Balances, end of period | 323,338 | 323,338 | 323,338 | 323,338 |
Additional paid-in capital | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Balances, beginning of period | 68,498 | 105,341 | 98,748 | 121,475 |
Issuance of common stock | (9,272) | (10,146) | (46,472) | (32,877) |
Conversion to common stock | (246) | (2,804) | ||
Redemption of preferred/preference stock | (10) | |||
Stock-based compensation expense | 8,286 | 6,702 | 15,236 | 15,867 |
Balances, end of period | 67,512 | 101,651 | 67,512 | 101,651 |
Retained earnings | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Balances, beginning of period | 5,188,119 | 5,282,374 | 5,438,930 | 5,279,682 |
Net (loss) income | 11,389 | (3,125) | (200,423) | 17,913 |
Dividends paid | (8,594) | (8,508) | (25,693) | (26,854) |
Balances, end of period | 5,190,914 | 5,270,741 | 5,190,914 | 5,270,741 |
Retained earnings | Cumulative Effect | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Balances, beginning of period | (21,900) | |||
Accumulated other comprehensive loss | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Balances, beginning of period | (836,262) | (907,678) | (840,143) | (948,961) |
Other comprehensive income (loss) | 22,690 | (18,774) | 26,571 | 22,509 |
Balances, end of period | (813,572) | (926,452) | (813,572) | (926,452) |
Treasury stock | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Balances, beginning of period | (4,699,113) | (4,750,403) | (4,734,777) | (4,674,089) |
Issuance of common stock | 10,046 | 11,291 | 45,710 | 32,289 |
Conversion to common stock | 246 | 2,934 | ||
Repurchase of common stock | (5,000) | (105,000) | ||
Balances, end of period | $ (4,689,067) | $ (4,743,866) | $ (4,689,067) | $ (4,743,866) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (AOCL) (Reclassifications) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Revenue | $ 891,898 | $ 790,125 | $ 2,525,658 | $ 2,373,782 |
Selling, general and administrative | 238,618 | 254,092 | 720,882 | 757,228 |
Income (loss) from continuing operations before taxes | 11,327 | (19,550) | (200,531) | 18,761 |
Income tax provision | (554) | 24,895 | (7,540) | 13,351 |
Net income (loss) | 11,389 | (3,125) | (200,423) | 17,913 |
Reclassification out of Accumulated Other Comprehensive Loss | Cash flow hedges | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Revenue | (104) | (98) | (107) | (23) |
Cost of sales | (6) | 54 | 36 | 99 |
Income (loss) from continuing operations before taxes | (110) | (44) | (71) | 76 |
Income tax provision | (27) | (11) | (18) | 19 |
Net income (loss) | (83) | (33) | (53) | 57 |
Reclassification out of Accumulated Other Comprehensive Loss | Available for sale securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Revenue | 6,490 | 146 | 10,060 | 42 |
Selling, general and administrative | 263 | 0 | 210 | 0 |
Income (loss) from continuing operations before taxes | 6,753 | 146 | 10,270 | 42 |
Income tax provision | 1,681 | 37 | 2,557 | 11 |
Net income (loss) | 5,072 | 109 | 7,713 | 31 |
Reclassification out of Accumulated Other Comprehensive Loss | Pension and postretirement benefit plans | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income (loss) from continuing operations before taxes | (12,037) | (10,185) | (38,436) | (28,905) |
Income tax provision | (2,875) | (2,633) | (9,027) | (7,406) |
Net income (loss) | (9,162) | (7,552) | (29,409) | (21,499) |
Reclassification out of Accumulated Other Comprehensive Loss | Transition credit | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Pension and postretirement benefit plans | 1 | 2 | 3 | 5 |
Reclassification out of Accumulated Other Comprehensive Loss | Prior service costs | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Pension and postretirement benefit plans | (140) | (123) | (417) | (377) |
Reclassification out of Accumulated Other Comprehensive Loss | Actuarial losses | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Pension and postretirement benefit plans | (10,990) | (8,587) | (32,923) | (25,858) |
Reclassification out of Accumulated Other Comprehensive Loss | Settlements | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Pension and postretirement benefit plans | $ (908) | $ (1,477) | $ (5,099) | $ (2,675) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss (AOCL) (Changes) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||||
Balances, beginning of period | $ 44,580 | $ 52,972 | $ 286,096 | $ 101,842 |
Other comprehensive income (loss) before reclassifications | 4,822 | 1,098 | ||
Reclassifications into earnings | 21,749 | 21,411 | ||
Other comprehensive income (loss), net of tax | 22,690 | (18,774) | 26,571 | 22,509 |
Balances, end of period | 79,125 | 25,412 | 79,125 | 25,412 |
Cash flow hedges | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||||
Balances, beginning of period | 337 | 191 | ||
Other comprehensive income (loss) before reclassifications | (2,455) | 135 | ||
Reclassifications into earnings | 53 | (57) | ||
Other comprehensive income (loss), net of tax | (2,402) | 78 | ||
Balances, end of period | (2,065) | 269 | (2,065) | 269 |
Available for sale securities | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||||
Balances, beginning of period | 2,849 | (3,061) | ||
Other comprehensive income (loss) before reclassifications | 2,237 | 7,547 | ||
Reclassifications into earnings | (7,713) | (31) | ||
Other comprehensive income (loss), net of tax | (5,476) | 7,516 | ||
Balances, end of period | (2,627) | 4,455 | (2,627) | 4,455 |
Pension and postretirement benefit plans | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||||
Balances, beginning of period | (819,018) | (846,461) | ||
Other comprehensive income (loss) before reclassifications | 0 | 0 | ||
Reclassifications into earnings | 29,409 | 21,499 | ||
Other comprehensive income (loss), net of tax | 29,409 | 21,499 | ||
Balances, end of period | (789,609) | (824,962) | (789,609) | (824,962) |
Foreign currency adjustments | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||||
Balances, beginning of period | (24,311) | (99,630) | ||
Other comprehensive income (loss) before reclassifications | 5,040 | (6,584) | ||
Reclassifications into earnings | 0 | 0 | ||
Other comprehensive income (loss), net of tax | 5,040 | (6,584) | ||
Balances, end of period | (19,271) | (106,214) | (19,271) | (106,214) |
Total | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||||
Balances, beginning of period | (836,262) | (907,678) | (840,143) | (948,961) |
Other comprehensive income (loss), net of tax | 22,690 | (18,774) | 26,571 | 22,509 |
Balances, end of period | $ (813,572) | $ (926,452) | $ (813,572) | $ (926,452) |
Other (Income) Expense (Details
Other (Income) Expense (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Other Income and Expenses [Abstract] | |||||
Loss on extinguishment of debt | $ 37,000 | $ 0 | $ 667 | $ 36,987 | $ 667 |
Insurance proceeds | (6,325) | 0 | (15,292) | 0 | |
Gain on sale of equity investment | 0 | 0 | (11,908) | 0 | |
Loss on sale of business | 0 | 0 | 0 | 17,683 | |
Other (income) expense | $ (6,325) | $ 667 | $ 9,787 | $ 18,350 |